To reach new highs in 2017, QCOM stock would have to appreciate by approximately 20.5% by the end of next year. QUALCOMM, Inc (NASDAQ:QCOM) would then surpass its previous all-time high of $81.97.
With gains of 36% so far in 2016, it’s not unimaginable that Qualcomm stock could pull off this feat. However, given our very bleak outlook for stocks in 2017, I suppose the more important question is can QCOM stock reach these highs in a flat or down market?
The optics are certainly present for Qualcomm stock to do so. It trades at just 13.6x forward earnings, has a boatload of cash, pays a respectable dividend at 3%, and buys back a ton of stock. Yes, QCOM stock looks like a security that investors would gravitate towards in a down market.
QCOM stock in 2017
The problem though, is that better investments exist, especially in the big tech space. Specifically, Apple (NASDAQ:AAPL) has more attractive metrics and will grow faster on a year-over-year basis. Qualcomm’s growth is expected to be flat next year, possibly 1%.
Then there are others like AT&T (NYSE:T) and Verizon (NYSE:VZ) with more attractive metrics and higher dividends, or even IBM. In other words, unless technology stands out from the rest, and greatly outperforms the broader market, QCOM stock owners should not expect much in 2017.