IBM is set to report earnings next week, and one market watcher sees the stock as a value play at current levels.



The company is scheduled to announce quarterly results Thursday after the market closes, and Mark Tepper of Strategic Wealth Partners likes the stock, off to a strong start to the year, ahead of its report. Here are his reasons why.



• The stock is undervalued relative to its peers, with a forward price-earnings ratio of 11.8, according to FactSet data.



• The company is strong in the cloud, mobile, security and analytics spaces.



• IBM is expanding its footprint in the growing blockchain market.



The stock fell nearly 8 percent last year and the company has seen 22 straight quarters of declining revenue. Still, after its last earnings report in October, the stock surged 9 percent.



Bottom line: Tepper sees IBM as a value at these levels, ahead of the company's earnings report next week.



Disclosure: Neither Mark Tepper nor his firm owns IBM.