The recent tech sector rally is likely to have spiked interest among investors in holding positions in large technology companies. Thus, one can consider the Invesco QQQ Trust (QQQ) ETF, which closely follows the tech-heavy NASDAQ 100 Index (NDX). While the QQQ ETF stock is up 36.5% year-to-date, the technical indicators currently suggest further upside potential.
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Technical Analysis in Detail
According to TipRanks’ technical analysis tool, the QQQ ETF stock’s 50-Day EMA (exponential moving average) is 331.36, while its price is $363.26, making it a Buy. Further, the shorter duration EMA (20-Day) also signals a Buy.
At the same time, QQQ’s price rate of change (ROC) of 6.77 points to a strong bullish trend. Meanwhile, based on Pivot Points, the QQQ has the next resistance near $368.29.
In summary, 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 Stock a Buy?
As per 1,180 top Wall Street analysts providing ratings on the QQQ’s 102 holdings, the ETF is a Moderate Buy, and the average price target of $383.01 implies a 5.4% upside. It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations.
Moreover, according to TipRanks’ Smart Score System, the QQQ stock has a smart score of eight, which indicates that the ETF could outperform the broader market over the long term.
Ending Thoughts
It is worth highlighting that the QQQ ETF has outperformed the S&P 500 (SPX) in nine of the past ten years. Further, the ETF has a low expense ratio (cost of managing the ETF) of 0.20%, which makes it an attractive investment option.
