JThe tech-heavy Nasdaq Composite Index posted the best weekly gain since November 2020, after jumping 8.1%. The rally was fueled by the Fed’s decision to raise interest rates for the first time since 2018 and progress in the Russian-Ukrainian peace talks. This reignited risk on the trade, driving battered growth stocks up sharply.
Invesco QQQ QQQ, which serves as a proxy for the index, jumped 8.3% last week. Although most stocks in QQQ’s portfolio have rallied, a few are the real stars, having gained more than 25% in a week. These include JD.com JD, MercadoLibre Inc. MELI, Modern mRNA, DocuSign Inc.. DOCU and Baidu BIDU.
The central bank raised rates by 25 basis points to 1.25%-0.50% and signaled hikes in the remaining six meetings this year that will take the interest rate to 1.9% by the end of the year. end of the year. This highly anticipated decision reflects efforts to control the highest inflation in decades. Fed Chairman Jerome Powell also showed confidence in the US economy which is strong enough to withstand tighter monetary policy (read: ETFs to buy in the latest Fed rate hike and more below).
Additionally, equities were boosted by the decline in the price of oil. The price of Brent crude, which touched $140 a barrel earlier this month, has fallen below $100, supported by a resurgence of virus cases in China, which could impact demand from the world’s largest importer. of crude, and signs of progress in ceasefire talks between Ukraine and Russia. .
Let’s take a closer look at the fundamentals of QQQ.
QQQ in brief
Invesco QQQ provides exposure to the 102 largest national and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information Technology accounts for 50.4% of assets, while Communication Services and Consumer Discretionary represent respectively 17.3% and 16.6% of the shares.
Invesco QQQ is one of the largest and most popular large-cap ETFs with $181 billion in assets under management and average daily volume of approximately 79 million shares. Invesco QQQ charges investors 20 basis points in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a medium risk outlook (read: Ride Wall Street’s Latest Comeback Rally With These ETFs).
Below we have highlighted the five stocks mentioned above in the ETF with their respective positions in the fund’s basket.
Best Performing Stocks in QQQ
JD.com is an online direct selling company in China. The company, through www.jd.com and mobile applications, offers a selection of authentic products.
JD.com jumped 35.7% in one week and its revenue is expected to rise 16.6% for this year. The stock represents 0.3% of QQQ’s assets and has a Zacks rank of No. 4 (sell). JD.com has a growth score of A.
MercadoLibre is one of the largest e-commerce platforms in Latin America. It is an e-commerce market leader in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views. The title has climbed nearly 32.9% in one week and weighs 0.44% in the fund’s basket.
MercadoLibre has an expected earnings growth rate of 331.7% for this year. It has a Zacks Rank #5 (Strong Selling) and a Growth Score of A.
Modern is a clinical-stage pharmaceutical company primarily focused on the discovery and development of messenger RNA (mRNA)-based therapies. The stock represents 29.4% of assets in the QQQ portfolio (read: 5 highest ranked ETFs for sale).
Moderna jumped 29.4% in a week but its profits are expected to fall 5.8% this year. Moderna has a Zacks Rank #3 (Maintaining) and Growth Score of A.
DocuSign is a global cloud-based software provider. The company’s DocuSign Agreement Cloud is a cloud-based software suite that automates and connects the entire agreement process. DocuSign jumped 27.3% in one week and its revenue is expected to rise a modest 0.5% for the fiscal year (ending January 2023).
DocuSign owns a 0.1% stake in QQQ and has a Zacks ETF rating of 3 (Hold). He has a growth score of A.
Baidu is a Chinese-language Internet search provider. It offers a Chinese-language search platform and operates primarily through Baidu Online Network Technology Co., Ltd., a network of third-party websites and software applications. The BIDU gained 25.3% in one week and weighs 0.3% in the fund’s basket.
Baidu is expected to see 1.4% profit growth for this year and has a No. 5 Zacks rank.
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Baidu, Inc. (BIDU): Free Stock Analysis Report
Moderna, Inc. (MRNA): Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
MercadoLibre, Inc. (MELI): Free Stock Analysis Report
JD.com, Inc. (JD): Free Stock Analysis Report
DocuSign (DOCU): Free Inventory Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.