For some reason, certain companies can attract buyers no matter the circumstance. I would put Symantec (SYMC) in that category. Shares have gained nearly 20% this year even as Symantec’s prospects deteriorated.
The demise of the personal computer is the major problem for the company. Smart phones and tablets simply do not have the same security concerns, thus the revenue opportunities are going to be lower going forward. Analysts are being generous with an expectation of 7% profit growth in the next fiscal year ending March 2015.
At current prices, shares trade for 13 times current fiscal year estimated earnings. A near-3% dividend yield is not enough to justify the risk here. I think this stock could be the worst-performing stock of the year.