The Nasdaq Composite Index has been hitting a series of record highs lately and notched its eighth gain in the past 10 sessions. Most of the rally was powered by renewed buying in the high-growth tech giants as tapering fears ease as well as optimism over a sustained economic recovery. In fact, the tech-heavy index topped 15,000 for the first time last month (read: Nasdaq Tops 15K for First Time: 5 Best Stocks in the ETF).
The Fed in its latest conference said that the central bank will gradually begin tapering $120 billion in monthly bond purchases by the end of the year but it is in no hurry to raise interest rates. This comment has led to a sharp rise in technology stocks, which rely on easy borrowing for superior growth and tend to benefit from a low-rate environment.
The FDA’s full approval to Pfizer (PFE - Free Report) and BioNTech's COVID-19 vaccine, which had been under emergency use authorization since December, has bolstered investors’ optimism over the economy. This will continue to boost technology spending.
As a result, Invesco QQQ (QQQ - Free Report) , which serves as a proxy to the index, has also hit new highs, gaining 3.6% in a month. Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up for 19.6% and 16.6% share, respectively.
QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $193.1 billion and an average daily volume of around 31.7 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong returns over the past month, a few tech stocks have led the way higher (read: Top-Ranked Technology ETFs Looking Good for September).
Below we have highlighted those five best-performing tech stocks in the ETF with their respective positions in the fund’s basket:
Top-Performing Tech Stocks in QQQ
MercadoLibre Inc. (MELI - Free Report) : It is one of the largest e-commerce platforms in Latin America. The stock climbed nearly 21% in a month and accounts for 0.63% in the fund’s basket. It has an expected earnings growth rate of more than 100% for this year and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Workday Inc. (WDAY - Free Report) : This company is a provider of enterprise-level software solutions for financial management and human resource domains. The stock has surged 16.6% in a month and has 0.3% exposure in the fund’s basket. Its earnings are expected to grow 1.8% in the fiscal year (ending January 2022). Workday has a Zacks Rank #3 (Hold).
Pinduoduo Inc. Sponsored ADR (PDD - Free Report) : This company provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent's Wechat app. The stock has a projected earnings growth rate of 115.2% for this year and has rallied 16.6% in a month. It accounts for 0.26% of the fund’s portfolio and has a Zacks Rank #2 (read: Join the Nasdaq Rally With These ETFs).
Synopsys Inc. (SNPS - Free Report) : This company is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. It has jumped 15.8% in a month and its earnings are expected to increase 22.7% for the fiscal year (ending October 2021). Synopsys makes up for 0.34% of assets in QQQ and has a Zacks Rank #3.
NVIDIA Corporation (NVDA - Free Report) : It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. This stock makes up for 3.78% share in the fund’s basket and has gained 15.1% in a month. It has estimated earnings growth of 58% for fiscal year (ending January 2022). The stock carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The Nasdaq Composite Index has been hitting a series of record highs lately and notched its eighth gain in the past 10 sessions. Most of the rally was powered by renewed buying in the high-growth tech giants as tapering fears ease as well as optimism over a sustained economic recovery. In fact, the tech-heavy index topped 15,000 for the first time last month (read: Nasdaq Tops 15K for First Time: 5 Best Stocks in the ETF).
The Fed in its latest conference said that the central bank will gradually begin tapering $120 billion in monthly bond purchases by the end of the year but it is in no hurry to raise interest rates. This comment has led to a sharp rise in technology stocks, which rely on easy borrowing for superior growth and tend to benefit from a low-rate environment.
The FDA’s full approval to Pfizer (PFE - Free Report) and BioNTech's COVID-19 vaccine, which had been under emergency use authorization since December, has bolstered investors’ optimism over the economy. This will continue to boost technology spending.
As a result, Invesco QQQ (QQQ - Free Report) , which serves as a proxy to the index, has also hit new highs, gaining 3.6% in a month. Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 49% of the assets, while communication services and consumer discretionary make up for 19.6% and 16.6% share, respectively.
QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $193.1 billion and an average daily volume of around 31.7 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong returns over the past month, a few tech stocks have led the way higher (read: Top-Ranked Technology ETFs Looking Good for September).
Below we have highlighted those five best-performing tech stocks in the ETF with their respective positions in the fund’s basket:
Top-Performing Tech Stocks in QQQ
MercadoLibre Inc. (MELI - Free Report) : It is one of the largest e-commerce platforms in Latin America. The stock climbed nearly 21% in a month and accounts for 0.63% in the fund’s basket. It has an expected earnings growth rate of more than 100% for this year and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Workday Inc. (WDAY - Free Report) : This company is a provider of enterprise-level software solutions for financial management and human resource domains. The stock has surged 16.6% in a month and has 0.3% exposure in the fund’s basket. Its earnings are expected to grow 1.8% in the fiscal year (ending January 2022). Workday has a Zacks Rank #3 (Hold).
Pinduoduo Inc. Sponsored ADR (PDD - Free Report) : This company provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent's Wechat app. The stock has a projected earnings growth rate of 115.2% for this year and has rallied 16.6% in a month. It accounts for 0.26% of the fund’s portfolio and has a Zacks Rank #2 (read: Join the Nasdaq Rally With These ETFs).
Synopsys Inc. (SNPS - Free Report) : This company is a vendor of electronic design automation (EDA) software to the semiconductor and electronics industries. It has jumped 15.8% in a month and its earnings are expected to increase 22.7% for the fiscal year (ending October 2021). Synopsys makes up for 0.34% of assets in QQQ and has a Zacks Rank #3.
NVIDIA Corporation (NVDA - Free Report) : It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. This stock makes up for 3.78% share in the fund’s basket and has gained 15.1% in a month. It has estimated earnings growth of 58% for fiscal year (ending January 2022). The stock carries a Zacks Rank #2.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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