The Invesco QQQ Trust (QQQ) ETF tracks the NASDAQ 100 index (NDX) and presents an opportunity to invest in several large technology companies. Interestingly, the QQQ ETF hit a new 52-week high last week, largely due to the rally in chip stocks such as Nvidia (NVDA). Even though the QQQ ETF stock is up 34% year-to-date, the technical indicators currently suggest further upside potential.
According to TipRanks’ technical analysis tool, QQQ ETF stock’s 50-Day EMA (exponential moving average) is 325.06, while its price is $354.65, making it a Buy. Further, the moving average convergence divergence (MACD) indicator also signals a Buy.
At the same time, QQQ’s price rate of change (ROC) of 9.11 points to a strong bullish trend. Meanwhile, based on Pivot Points, the QQQ has the next resistance near $368.
In a nutshell, the QQQ ETF is a Buy based on TipRanks’ easy-to-read technical summary signals (which combine the moving averages and the technical indicators into a single, summarized call).
Is QQQ a Good ETF to Invest in?
In nine of the past ten years, the QQQ ETF, which has a strong emphasis on technology, has outperformed the S&P 500 (SPX). Further, the ETF has a low expense ratio (cost of managing the ETF) of 0.20%, which makes it an attractive investment option.
Curious about the analysts’ perspective? Well, as per 1,733 analysts providing ratings on QQQ’s 102 holdings, the ETF is a Moderate Buy and the average price target of $382.12 implies a 7.8% upside.
Moreover, according to TipRanks’ Smart Score System, QQQ has a smart score of eight, which indicates that the ETF could outperform the broader market over the long term.