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Last week was marked by volatility given fears of a second wave of coronavirus infections. This is especially true as the United States reported more than 30,000 additional coronavirus cases on Friday and Saturday, the highest daily totals since May 1, according to data compiled by Johns Hopkins University (read: Hedge Market Volatility With These ETFs).
However, a flurry of economic data indicates that the downturn may have bottomed in April. Coupled with upbeat data, news of more stimulus from the Federal Reserve and hopes of the Trump administration’s $1 trillion infrastructure spending package helped to lift investors’ sentiment.
In a tug of war between bulls and bears, the Dow Jones and S&P 500 gained at least 1% each last week while the Nasdaq Composite Index advanced over 3%. As such, Invesco QQQ (QQQ - Free Report) , which tracks the Nasdaq 100 Index, gained 3.5% last week. Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF provides exposure to the 103 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 47.4% of the assets, while communication services holds 20.4% share. QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $116 billion and average daily volume of around 51.8 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Growth ETFs to Soar Higher: Thanks to Fed & Government).
Although most of the stocks in the fund’s portfolio delivered strong returns last week, a few gained in double digits. Below we have highlighted the five best-performing stocks in the ETF with their respective positions in the fund’s basket:
Top-Performing Stocks in QQQ
BioMarin Pharmaceutical Inc. (BMRN - Free Report) : This company focuses on the development and commercialization of treatments for serious life threatening medical conditions, mostly for children. The stock climbed 17.4% last week and accounts for 0.2% in the fund’s basket. It has an expected earnings growth rate of 67.7% for this year and a Zacks Rank #2 (Buy).
Incyte Corporation (INCY - Free Report) : This biopharmaceutical company is focused on the discovery, development and commercialization of proprietary therapeutics. It gained 14.5% last week and its earnings are expected to decline 117% for this year. Incyte accounts for 0.2% of assets in QQQ and has a Zacks Rank #3.
Seattle Genetics Inc. : This biotechnology company is primarily focused on developing and commercializing therapies targeted for the treatment of cancer. It gained 12.4% last week and accounts for 0.3% share. The stock has a Zacks Rank #2 (read: Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain).
Zoom Video Communications Inc. (ZM - Free Report) : It provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The stock risen 11% last week and accounts for 0.4% in the fund’s basket. It has an expected earnings growth rate of 237.1% for the fiscal year (ending January 2021) and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lam Research Corporation (LRCX - Free Report) : This company supplies wafer fabrication equipment and services to the semiconductor industry. The stock has an estimated earnings growth rate of 11.4% for fiscal year (ending June 2021) and accounts for 0.4% share in QQQ portfolio. It has a Zacks Rank #3.
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Nasdaq Continues to Excel : 5 Best Stocks in ETF
Last week was marked by volatility given fears of a second wave of coronavirus infections. This is especially true as the United States reported more than 30,000 additional coronavirus cases on Friday and Saturday, the highest daily totals since May 1, according to data compiled by Johns Hopkins University (read: Hedge Market Volatility With These ETFs).
However, a flurry of economic data indicates that the downturn may have bottomed in April. Coupled with upbeat data, news of more stimulus from the Federal Reserve and hopes of the Trump administration’s $1 trillion infrastructure spending package helped to lift investors’ sentiment.
In a tug of war between bulls and bears, the Dow Jones and S&P 500 gained at least 1% each last week while the Nasdaq Composite Index advanced over 3%. As such, Invesco QQQ (QQQ - Free Report) , which tracks the Nasdaq 100 Index, gained 3.5% last week. Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF provides exposure to the 103 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 47.4% of the assets, while communication services holds 20.4% share. QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $116 billion and average daily volume of around 51.8 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Growth ETFs to Soar Higher: Thanks to Fed & Government).
Although most of the stocks in the fund’s portfolio delivered strong returns last week, a few gained in double digits. Below we have highlighted the five best-performing stocks in the ETF with their respective positions in the fund’s basket:
Top-Performing Stocks in QQQ
BioMarin Pharmaceutical Inc. (BMRN - Free Report) : This company focuses on the development and commercialization of treatments for serious life threatening medical conditions, mostly for children. The stock climbed 17.4% last week and accounts for 0.2% in the fund’s basket. It has an expected earnings growth rate of 67.7% for this year and a Zacks Rank #2 (Buy).
Incyte Corporation (INCY - Free Report) : This biopharmaceutical company is focused on the discovery, development and commercialization of proprietary therapeutics. It gained 14.5% last week and its earnings are expected to decline 117% for this year. Incyte accounts for 0.2% of assets in QQQ and has a Zacks Rank #3.
Seattle Genetics Inc. : This biotechnology company is primarily focused on developing and commercializing therapies targeted for the treatment of cancer. It gained 12.4% last week and accounts for 0.3% share. The stock has a Zacks Rank #2 (read: Race for Coronavirus Vaccine Heats Up: Biotech ETFs to Gain).
Zoom Video Communications Inc. (ZM - Free Report) : It provides a video-first communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The stock risen 11% last week and accounts for 0.4% in the fund’s basket. It has an expected earnings growth rate of 237.1% for the fiscal year (ending January 2021) and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lam Research Corporation (LRCX - Free Report) : This company supplies wafer fabrication equipment and services to the semiconductor industry. The stock has an estimated earnings growth rate of 11.4% for fiscal year (ending June 2021) and accounts for 0.4% share in QQQ portfolio. It has a Zacks Rank #3.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>