5 Tech Companies Surviving the Bear

Stock #1: IBM

Let’s start with Big Blue. IBM is no longer that large mainframe hardware manufacturer. In its place is a service behemoth that has long tentacles that extend into the entire global economy.

While weaker players fall by the wayside, IBM has solidified its business during this recession. The proof is in the pudding. Recently, the company announced that fourth-quarter profit came in at $4.4 billion or $3.28 per share. That bested analyst estimates of $3.03. More importantly, gross margin expanded to 47.9% meaning the company was able to increase profitability at a time of horrible economic conditions.

Going forward, the company raised guidance for 2009 predicting a profit of $9.20 per share compared with estimates of $8.75. The recovery has not even begun, and Big Blue is already expanding its business. Imagine how they will do when the recovery begins in earnest.

Next: Stock #2 – Cisco Systems