Invesco QQQ ETF: A Moderate Buy with Upside Potential

The Invesco QQQ ETF is up 0.34% over the past five days and 10.07% year-to-date. According to TipRanks' analyst consensus, QQQ is a Moderate Buy with a Street average price target of $603.33, implying a 7.50% upside. Its five holdings with the highest upside potential are AppLovin, Micron Technology, Atlassian Corporation, Regeneron Pharmaceuticals, and Adobe Systems, while its five holdings with the greatest downside potential are Palantir Technologies, Tesla Motors, Shopify, KLA Corporation, and On Semiconductor. The QQQ ETF's Smart Score is seven, indicating that it is likely to perform in line with the market.

The Invesco QQQ ETF (QQQ) has shown strong performance, with a 0.34% gain over the past five days and a 10.07% year-to-date increase [1]. According to TipRanks' analyst consensus, the ETF is rated as a Moderate Buy, with an average price target of $603.33, implying a 7.50% upside [2].

Key holdings with the highest upside potential include AppLovin, Micron Technology, Atlassian Corporation, Regeneron Pharmaceuticals, and Adobe Systems. Conversely, Palantir Technologies, Tesla Motors, Shopify, KLA Corporation, and On Semiconductor are considered to have the greatest downside potential.

The ETF's Smart Score of seven indicates that it is likely to perform in line with the broader market. This score takes into account various factors such as analyst ratings, price targets, and market sentiment.

In the first quarter of 2025, QQQ experienced a notable decline, ending its streak of consecutive positive quarterly returns. The ETF, which tracks the Nasdaq-100 Index, fell by 8.11% on a net asset value (NAV) basis, underperforming the S&P 500 Index by 3.84% but outperforming the Russell 1000 Growth Index by 1.86% [1].

The primary detractors to QQQ's performance were its overweight exposure to the Technology sector and lack of exposure to the Financials sector. Despite these challenges, several individual stocks contributed positively to QQQ's performance, such as Gilead Sciences, Amgen, and Netflix.

Looking ahead, the Invesco QQQ ETF continues to show promise, with positive analyst ratings and a strong year-to-date performance. Investors should closely monitor the ETF's holdings and broader market conditions to make informed investment decisions.

References:
[1] https://www.invesco.com/qqq-etf/en/etf-insights/qqq-quarterly-outlook.html
[2] https://www.tipranks.com/etf/qqq