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Stock price recovery of big tech companies and rally in top chip stocks including NvidiaNASDAQ: NVDAand Advanced Micro Devices (NASDAQ:AMDThey ran the Invesco QQQ Trust (QQQ) ETF (exchange-traded fund) higher. Up about 31% year-to-date, QQQ recently made a new 52-week high of $349.24. Meanwhile, it has significantly outperformed the broader S&P 500 index.SPX) by a wide margin. While QQQ gains in value, analysts see more upside.
Lower valuations, higher cost-cutting measures, improving demand trends and easing inflation have led tech stocks to recover, driving the share price of the QQQ ETF higher. For example, QQQ tracks the Nasdaq-100 Index (NDX), and Microsoft (including Microsoft) the main five holdingsNASDAQ:MSFT), Apple (NASDAQ:AAPLNivea, Amazon (NASDAQ: AMZN) and letters (NASDAQ:GOOGL) in 2023 have recorded high profits. Check out the chart below for the weightings and performance of their top five holdings so far this year.
What is the forecast for the QQQ ETF?
At TipRanks, the QQQ ETF has an outstanding Smart Score of eight, indicating that it continues to outperform the broad market average. Additionally, the ETF has more upside potential based on the analyst consensus view of nearly 2K ratings.
Based on 1,719 analyst recommendations for QQQ holdings, Invesco QQQ Trust ETF’s 12-month price average of $375.77 indicates a potential upside of 7.85% from current levels. Also, the ETF sports a moderate buy consensus on TipRanks.
Among the analysts rating the stock, 66.96% gave it a buy rating, 29.20% gave it a hold rating, and 3.84% gave it a sell rating.
at last
QQQ provides diversification into high-tech stocks, thus reducing your overall risk. Meanwhile, the market’s performance has rebounded, with analyst optimism and a low expense ratio making it a tech-focused ETF.
While QQQ has posted significant gains this year, it has lagged this tech ETF.
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