High-Quality Tech Investors Will Be Rewarded Come Earnings Season: Some Stocks To Consider

Investors who focus on high-quality technology stocks will be rewarded come earnings season, according to Douglas C. Lane & Associates' Sarat Sethi. That's why he picked up shares of Qualcomm Inc QCOM on the pullback.

"Qualcomm is just a depressed stock with a great balance sheet and they said they're going to buy back over $10 billion of their stock," Sethi said Friday on CNBC's "Fast Money Halftime Report."

Apple Inc AAPL is holding up well, semiconductors are doing well and demand for 5G is picking up, but Qualcomm remains out of favor, which creates opportunity, he explained.

There are other opportunities beyond Qualcomm. "You gotta look at quality companies that are going to lead the way out," Sethi stressed.

Some may be highly-valued like NVIDIA Corp NVDA, others will fall into the value tech category like PayPal Holdings Inc PYPL or Meta Platforms Inc FB, he said.

See Also: 5 Nvidia Analysts On AI Inflection, A $1-Trillion Opportunity, Silicon-Software Split And Sky-High Valuation

"I think if you stick with high-quality technology companies, buy them on the dips, I think you will be well rewarded going into earnings season because I think investors are going to reward true earnings," Sethi said.

QCOM Price Action: Qualcomm has traded between $122.16 and $193.58 over a 52-week period.

The stock was down 1.12% at $156.69 at time of publication.

Photo: courtesy of Qualcomm.