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.
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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)
