QQQ ETF Shows Potential Despite Recent Dip in Stock Prices

The Invesco QQQ ETF has declined 2.23% over the past week but is up 12.91% year-to-date. Analyst consensus rates it as a Moderate Buy with a potential upside of 18.74%, indicating a possible rebound and growth for its underlying holdings.

Date: 08-09-2024

AI Rating: 7

The Invesco QQQ ETF is experiencing a short-term decline of 2.23% over the past five days. However, an impressive year-to-date increase of 12.91% suggests underlying strength. The ETF is currently rated a Moderate Buy according to TipRanks’ analyst consensus.

The Street’s average price target for QQQ stands at $547.43, representing an upside potential of 18.74%. This optimistic outlook on QQQ is supported by a Smart Score of 8, indicating a strong likelihood of outperforming the market.

Focusing on the individual components of QQQ, several stocks are highlighted for their high upside potential. Notable mentions include:

Micron Technology (MU)
PDD Holdings (PDD)
Moderna (MRNA)
Super Micro Computer (SMCI)
Dexcom (DXCM)

Conversely, some holdings are identified with downside potential, including:

Tesla (TSLA)
American Electric Power (AEP)
Fortinet (FTNT)
Paychex (PAYX)
Cintas (CTAS)

Despite the slight recent decline, the overall positive outlook on QQQ and its holdings, combined with the favorable analyst ratings, could serve to buoy investor confidence moving forward. The downside risk presented by the identified stocks suggests a mixed but balanced risk landscape for current and potential investors in the QQQ ETF.

Stocks: MU PDD MRNA SMCI DXCM TSLA AEP FTNT PAYX CTAS