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5 Stocks in Nasdaq ETF That Gained Most Last Week

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The tech-heavy Nasdaq Composite Index logged in the best weekly gain since November 2020, having jumped 8.1%. The rally was fueled by the Fed’s decision to raise interest rates for the first time since 2018 and progress in the Russia-Ukraine peace talks. This has rekindled risk-on trade, resulting in a sharp rise in the beaten-down growth stocks.

Invesco QQQ (QQQ - Free Report) , which serves as a proxy to the index, jumped 8.3% last week. Though most of the stocks in QQQ’s portfolio rallied, a few are the real stars, having gained more than 25% in a week. These include JD.com (JD - Free Report) , MercadoLibre Inc. (MELI - Free Report) , Moderna (MRNA - Free Report) , DocuSign Inc. (DOCU - Free Report) and Baidu (BIDU - Free Report) .

The central bank has raised rates by 25 bps to 1.25%-0.50% and signaled hikes at all six remaining meetings this year that will take the interest rate to 1.9% by the year-end. The move, which was highly anticipated, reflects efforts to control the highest inflation in decades. Fed Chair Jerome Powell also showed confidence in the American economy that is strong enough to withstand a tighter monetary policy (read: ETFs to Buy on Latest Fed Rate Hike and More Hereafter).

Further, the stocks got a boost from the decline in oil price. Brent price, which touched $140 per barrel earlier this month, dropped to below $100 buoyed by a resurgence of virus cases in China, which may impact demand in the world's biggest crude importer, and signs of progress in cease-fire talks between Ukraine and Russia.

Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

Invesco QQQ 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 50.4% of the assets, while communication services and consumer discretionary make up for 17.3% and 16.6% share, respectively.

Invesco QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $181 billion and an average daily volume of around 79 million shares. Invesco QQQ charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Ride Wall Street's Latest Comeback Rally With These ETFs).

Below we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket.

Top-Performing Stocks in QQQ

JD.com operates as an online direct sales company in China. The company, through www.jd.com and mobile applications, offers a selection of authentic products.

JD.com jumped 35.7% in a week and its earnings are expected to increase 16.6% for this year. The stock makes up for 0.3% of assets in QQQ and has a Zacks Rank #4 (Sell). JD.com has a Growth Score of A.

MercadoLibre is one of the largest e-commerce platforms in Latin America. It is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views. The stock climbed nearly 32.9% in a week and accounts for 0.44% in the fund’s basket.

MercadoLibre has an expected earnings growth rate of 331.7% for this year. It has a Zacks Rank #5 (Strong Sell) and a Growth Score of A.

Moderna is a clinical-stage pharmaceutical company primarily focused on discovering and developing messenger RNA (mRNA) based therapies. The stock makes up for 29.4% assets in QQQ portfolio (read: 5 Top-Ranked ETFs on Sale).

Moderna has jumped 29.4% in a week but its earnings are expected to decline 5.8% this year. Moderna has a Zacks Rank #3 (Hold) and Growth Score of A.

DocuSign is a global provider of cloud-based software. The company’s DocuSign Agreement Cloud is a cloud software suite that automates and connects the entire agreement process. DocuSign has jumped 27.3% in a week and its earnings are expected to increase a modest 0.5% for the fiscal year (ending January 2023).

DocuSign accounts for 0.1% share in QQQ and has a Zacks ETF Rank of 3 (Hold). It has a Growth Score of A.

Baidu is a Chinese-language Internet search provider. It offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd., a network of third-party websites and software applications. BIDU has gained 25.3% in a week and accounts for 0.3% in the fund’s basket.

Baidu is expected to see earnings growth of 1.4% for this year and has a Zacks Rank #5.