The tech-heavy Nasdaq Composite Index topped 15,000 for the first time ever driven by continued strength in tech stocks like Microsoft MSFT, Nvidia NVDA and Alphabet (NASDAQ:GOOGL) GOOGL.
In particular, renewed optimism over the global economic recovery after the first full U.S. approval of a COVID-19 vaccine made by Pfizer PFE and BioNTech bolstered risk-on trade. This is because the full approval will help squash the ongoing surge in the COVID-19 Delta variant and lead to a continued reopening of the economy. Additionally, strong corporate profit growth and ultra-easy monetary policies remain the major catalysts.
According to research firm Bespoke Investment Group, this is the sixth time the Nasdaq has crossed a 1,000-point threshold since the pandemic began (read: Buy These 7 Amazing ETFs Trading at Low P/E Ratios).
As a result, Invesco QQQ QQQ, which serves as a proxy to the index, has also hit new highs, gaining 19.6% so far this year. Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF 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 49.2% of the assets, while communication services and consumer discretionary make up for 19.5% and 16.1% share, respectively.
QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $184.7 billion and average daily volume of around 32.7 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered strong returns so far this year, a few have gained more than 50%.
Below we have highlighted those five best-performing stocks in the ETF with their respective positions in the fund’s basket:
Top-Performing Stocks in QQQ
Moderna (NASDAQ:MRNA) Inc. MRNA: It is a clinical-stage pharmaceutical company, primarily focused on discovering and developing messenger RNA-based therapies. The stock has skyrocketed about 278% this year and has an expected earnings growth rate of more than 1000%. Moderna currently has a Zacks Rank #2 and VGM Score of B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA Corporation (NASDAQ:NVDA) NVDA: This company is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. The stock has gained about 67% and has an estimated earnings growth rate of 68% for fiscal year (ending Jan 22). It has a Zacks Rank #2 and Growth Score of B (read: Nvidia ETFs to Buy on Blockbuster Q2 Earnings).
ASML Holding (NASDAQ:ASML) N.V. ASML: It is a world leader in the manufacture of advanced technology systems for the semiconductor industry. The stock has climbed nearly 65% so far this year and has an estimated earnings growth rate of 65.5% for this year. It has a Zacks Rank #2 and Growth Score of A.
Alphabet Inc. GOOGL: It is one of the most innovative companies in the modern technological age. The stock has surged more than 61% and has an estimated earnings growth of 73.8% for this year. It has a Zacks Rank #3 and Growth Score of A (read: 5 Bargain ETFs to Tap Renewed Tech Strengthh).
Applied Materials Inc (NASDAQ:AMAT). AMAT: It is one of the world’s largest suppliers of equipment for the fabrication of semiconductor, flat panel liquid crystal displays, and solar photovoltaic cells and modules. The stock has climbed nearly 52% so far this year and has an estimated earnings growth rate of 64% for the fiscal year (ending October 2021). It has a Zacks Rank #2 and VGM Score of B.
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Microsoft Corporation (NASDAQ:MSFT): Free Stock Analysis Report
Pfizer Inc. (NYSE:PFE): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
ASML Holding N.V. (ASML): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
Applied Materials, Inc. (AMAT): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
Alphabet Inc. (GOOGL): Free Stock Analysis Report
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