The "big data" revolution that IBM is leading has led to multiple successful initiatives, hence why the stock rose 25 % last year. A decade ago, IBM's operating margin was under 10% and return on invested capital (ROIC) was only 12%. As of 2011, operating margin increased to 20%, while ROIC surged to almost 35%. This was made possible by dumping low margin business and focusing on profitable one.
Over the past ten years, IBM generated almost $120 billion in free cash flow, or about 60% of its current market capitalization; over the next five years, management targets another $100 billion.
IBM is one of the best company in the Tech sector. If the company can sustain it's ROIC of 30 % , I believe we'll see the stock make new highs in the next 5 years. But just like anything else in tech, NOTHING is guarantee. RIMM and other tech companies ,were once the next " apple" .
SOURCE : ( BLOOMBERG, CNN MONEY)