Qualcomm ( QCOM) is one of seven of Barclays' technology stock picks. The company develops and licenses wireless technology and makes semiconductors for mobile phones. The company's key patents are based on code division multiple access (CDMA) technology, which is a standard in wireless communications and is licensed by most major handset makers. Barclays' analysts say: "We believe Qualcomm may be well-positioned to benefit from secular growth trends in mobile data, with impressive positioning in its licensing and chipset businesses; leverage to the accelerated global embrace of smartphones, 3G and connected devices; and commitment to delivering double-digit revenue and earnings growth for the next five years." The company is in good financial shape, as it has a solid balance sheet with about $18 billion in cash and investments, and strong cash-flow generation. Qualcomm shares are up 15% this year and 54% over the past year. The stock is trading at $56 now, a 14% discount to Barclays' target price of $64 set April 21.
Timber industry giant Weyerhaeuser ( WY) has restructured over the past few years, including selling its paper business in 2007 and its corrugated-packaging unit in 2008. And then last year, it converted its corporate structure into a real estate investment trust (REIT) to reap tax benefits. Barclays' analysts say that "after a 16-year downturn in real lumber pricing (between 1993 and 2009), an upturn is under way." "Weyerhaeuser is a superior hard-asset play," they said, "whose highly productive timberlands thrive in an inflationary environment. We believe a multi-year cyclical upturn in demand, prices and profits began in 2010, and positive momentum should build in 2011, 2012 and beyond." The company's non-timber assets include a wood-products division, a homebuilding unit and a pulp business. On May 2, Barclays put a $33 price target on Weyerhaeuser's shares, a 50% premium to its current price. Its shares are up 20% this year, but have a one-year gain of only 3.8%. The timber company has a market value of $11 billion.