QQQ ETF Shows Moderate Buy Rating with Notable Risks

A recent report highlights QQQ's 1.08% dip over five days, contrasted with a year-to-date increase of 9.88%. Analysts rate it as a Moderate Buy with a 19.05% upside. However, potential downside exists in key holdings, presenting a mixed outlook for investors.

Date: 11-09-2024

AI Rating: 6

The report provides valuable insights into the performance of QQQ stock, particularly noting its recent decline of 1.08% over the past five days. Despite this short-term drop, the ETF has seen a substantial rise of approximately 9.88% year-to-date, indicating overall positive momentum for the year.

Analysts have given the QQQ a 'Moderate Buy' rating, reflecting a consensus based on a weighted average of its holdings' analyst ratings. The average price target of $541.01 suggests a potential upside of 19.05%, which is encouraging for investors seeking growth.

However, the report also outlines holdings with varying upside and downside potentials. The five holdings with the highest upside include prominent companies such as Micron Technology (MU) and Moderna (MRNA), which could positively influence QQQ's performance. Conversely, stocks like Tesla (TSLA) and Fortinet (FTNT) present risks that could detract from overall growth.

The Smart Score of seven indicates that QQQ is expected to perform in line with the market, suggesting that while it has some potential for gains, investors should remain cautious of underlying risks present within its holdings.

Stocks: MU MRNA TSLA FTNT PAYX AEP CTAS