We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBM Closes Buyout of Regulatory Compliance Firm Promontory
Read MoreHide Full Article
International Business Machines Corporation (IBM - Free Report) has announced the completion of its acquisition of Promontory Financial Group, a leading risk management and regulatory compliance consulting firm.
What Led to the Acquisition?
Today, financial regulations and risk management requirements are changing rapidly. These demand substantial operational efforts and costs to keep pace with. With Promontory’s expertise in the aforementioned field, the acquisition is likely to strengthen IBM’s capabilities going ahead. Additionally, with Watson that is equipped with cognitive capabilities, IBM will be able to speed up its development of cognitive solutions for compliance and risk management.
The Promontory acquisition will complement the Industry Platforms business of IBM, which has been created to offer “as a service” offerings custom built for individual industries. We note that, this will combine the benefits of the IBM Cloud, Watson and industry specific capabilities of specialized providers to achieve enhanced efficiency, security, quality and transparency while lowering operational costs.
In other words, IBM is trying to strengthen its presence in the cloud business that is gathering steam with every passing day.
As per an IDC report, worldwide spending on cognitive systems is estimated to reach over $31 billion by 2019 growing at a CAGR of 55%. Notably, the banking sector alone will account for 20% share of the total spending on cognitive systems.
Intensifying Competition
We note that competition is intensifying in the financial regulations and risk management segment with the presence of players such as ICI Consulting, Primatics Financial, LLC and Resources Global Professionals. However, the Promontory deal puts IBM in good stead among its peers.
Notably, the consensus estimate for Applied Optoelectronics’ current year improved to 81 cents from 51 cents over the last 30 days.
The consensus estimate for Acacia’s current year improved to $2.33 from $2.28 over the last 30 days.
Last but not the least, the consensus estimate for Advanced Energy’s current year improved to $2.67 from $2.51 over the last 30 days.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
IBM Closes Buyout of Regulatory Compliance Firm Promontory
International Business Machines Corporation (IBM - Free Report) has announced the completion of its acquisition of Promontory Financial Group, a leading risk management and regulatory compliance consulting firm.
What Led to the Acquisition?
Today, financial regulations and risk management requirements are changing rapidly. These demand substantial operational efforts and costs to keep pace with. With Promontory’s expertise in the aforementioned field, the acquisition is likely to strengthen IBM’s capabilities going ahead. Additionally, with Watson that is equipped with cognitive capabilities, IBM will be able to speed up its development of cognitive solutions for compliance and risk management.
INTL BUS MACH Price
INTL BUS MACH Price | INTL BUS MACH Quote
What Does this Mean for IBM?
The Promontory acquisition will complement the Industry Platforms business of IBM, which has been created to offer “as a service” offerings custom built for individual industries. We note that, this will combine the benefits of the IBM Cloud, Watson and industry specific capabilities of specialized providers to achieve enhanced efficiency, security, quality and transparency while lowering operational costs.
In other words, IBM is trying to strengthen its presence in the cloud business that is gathering steam with every passing day.
As per an IDC report, worldwide spending on cognitive systems is estimated to reach over $31 billion by 2019 growing at a CAGR of 55%. Notably, the banking sector alone will account for 20% share of the total spending on cognitive systems.
Intensifying Competition
We note that competition is intensifying in the financial regulations and risk management segment with the presence of players such as ICI Consulting, Primatics Financial, LLC and Resources Global Professionals. However, the Promontory deal puts IBM in good stead among its peers.
Zacks Rank & Key Picks
At present, IBM has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Applied Optoelectronics, Inc. (AAOI - Free Report) , Acacia Communications, Inc. and Advanced Energy Industries, Inc. (AEIS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Applied Optoelectronics’ current year improved to 81 cents from 51 cents over the last 30 days.
The consensus estimate for Acacia’s current year improved to $2.33 from $2.28 over the last 30 days.
Last but not the least, the consensus estimate for Advanced Energy’s current year improved to $2.67 from $2.51 over the last 30 days.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>