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Large-Cap Growth ETF (QQQ) Hits New 52-Week High

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  • IVZ
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For investors seeking momentum, Invesco QQQ QQQ is probably on radar. The fund just hit a 52-week high and is up 39.5% from its 52-week low price of $288.07/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

QQQ in Focus

Invesco QQQ provides exposure to the largest domestic and international non-financial companies listed on the Nasdaq. About half of the portfolio is dominated by information technology, while communication services and consumer discretionary round off the next two spots. Invesco QQQ charges 20 basis points in annual fees (see: all the Large Cap Growth ETFs here).

Why the Move?

The growth space of the broad U.S. stock market has been an area to watch lately, given that the S&P 500 and Nasdaq are hitting new all-time highs. The latest rally can be attributed to better-than-expected Q3 corporate earnings. Total earnings from 467 S&P 500 members that have reported so far are up 42.1% from the same period last year on 17.7% lower revenues, with 79.7% beating EPS estimates and 74.5% beating revenue estimates. Earnings and revenue growth rates have fallen in the ongoing Q3 earnings season from the first-half’s breakneck speed but are still above the historical averages. In particular, growth stocks tend to outperform in a trending market (i.e., a market characterized by a prolonged uptrend).

More Gains Ahead?

Currently, QQQ has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting continued outperformance in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.


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Invesco QQQ (QQQ): ETF Research Reports
 
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