Investors looking to invest in tech stocks may consider the Invesco QQQ Trust (NASDAQ:QQQ). So far in 2023, the QQQ ETF has advanced more than 42%, easily outperforming the 18.6% rise in the S&P 500 Index (SPX). Encouragingly, the ETF’s Outperform Smart Score on TipRanks indicates positive signals. Also, the analysts’ average price target implies more room for the ETF to grow.
The ETF might have more room to run on the back of falling inflation, the economy’s resilient recovery, and the pause on the Fed’s benchmark interest rate hike.
QQQ ETF: Key Supporting Factors
The QQQ ETF stock is a growth-focused index fund with about $208.95 billion in assets under management as of July 20. Also, the ETF has a low expense ratio (cost of managing the ETF) of 0.20%, which makes it a promising investment.
Moving on, the QQQ ETF stock has beaten the S&P 500 Index in nine out of the last ten years, with the trend continuing in 2023 so far. Moreover, the stock has delivered an average annualized return of 18.93% in the past decade, ending in June 2023.
Favorable Smart Score
According to TipRanks’ Smart Score System, QQQ has a Smart Score of 8 out of 10, which indicates that the ETF could outperform the broader market over the long term. It is worth highlighting that more than 50% of the holdings boast an Outperform Smart Score (i.e., a score of 8 or higher).
The stock has a Positive signal from retail investors. Our data shows that about 10.3% of TipRank’s retail investors changed their holdings of the QQQ in the last 30 days. Moreover, The SPY ETF enjoys bullish blogger sentiment on TipRanks.
Is Invesco QQQ a Good Buy, According to Top Analysts?
As per 1,244 top analysts providing ratings on the QQQ’s 102 holdings, the ETF is a Moderate Buy, and the average price target of $415.49 implies a 10.28% upside. It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations.
QQQ ETF’s Best-Performing Stocks
Here are some notable companies within the QQQ ETF that have demonstrated outstanding performance in the past year:
- Nvidia Corporation (NVDA)
- Netflix Inc. (NFLX)
- Broadcom Inc. (AVGO)
- Constellation Energy Corporation (CEG)
- Trade Desk (TTD)
- Meta Platforms, Inc. (META)
- ON Semiconductor Corporation (ON)
- Paccar (PCAR)
- Dexcom (DXCM)
- Booking Holdings (BKNG)