The tech-heavy Nasdaq Composite Index managed to end the week in green and move toward yearly highs amid volatile trading though the Dow Jones Industrial Average and the S&P 500 logged their worst week since March. The outperformance came on the back of a surge in regional banking shares, robust tech earnings as well as a stronger-than-expected jobs report.
Invesco QQQ QQQ, which serves as a proxy to the Nasdaq Index, gained 0.1%. We have highlighted the five best-performing stocks of QQQ from last week that led the way higher in the portfolio. These include Datadog DDOG, Verisk Analytics VRSK, Rivian Automotive RIVN, Cognizant Technology Solutions CTSH and Lucid Group LCID.
The Nasdaq maintained its strength on better-than-feared results from Apple (AAPL). The tech titan beat estimates for both earnings and revenues, powered by a surprise boost in iPhone sales. Additionally, a rebound in regional bank shares after suffering early in the week added to the strength (read: Take a Bite of Apple With These ETFs Post Solid Q2 Earnings).
Further, upbeat job numbers pointed to a resilient labor market. The economy added 253,000 jobs in April and the unemployment rate dropped to 3.4%.
Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
Invesco QQQ provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq. Information technology accounts for 49.5% of the assets, while communication services and consumer discretionary make up for a 16.6% and 14.3% share, respectively.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with AUM of $171.5 billion and an average daily volume of around 54.6 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Below, we have highlighted the above-mentioned five stocks in the ETF with their respective positions in the fund’s basket.
Top-Performing Stocks in QQQ
Datadog is a monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The stock jumped 17.1% last week and its earnings are expected to grow 9.2% this year.
Datadog makes up for 0.17% of assets in QQQ and has a Zacks Rank #3 (Hold). It has a Growth Score of B (read: Tough Time Ahead for Cloud Computing ETFs?).
Verisk Analytics is one of the leading data analytics providers serving customers in insurance, energy and specialized markets, and financial services. The stock makes up for 0.25% of assets in the QQQ portfolio.
Verisk Analytics gained 9.5% last week and has an expected earnings growth rate of 9.8% for this year. VRSK has a Zacks Rank #2 (Buy).
Rivian Automotive develops and manufactures electric vehicles. The stock climbed 6% and accounts for 0.21% in the fund’s basket.
Rivian Automotive has an expected earnings growth rate of 13.1% for this year. It has a Zacks Rank #3.
Cognizant Technology is a leading professional services company. Shares of CTSH were up 5.8% last week. Cognizant Technology has an estimated earnings growth rate of 7.6% for the next year (read: ETFs to Bet on Mega-Cap Tech Stocks).
Cognizant Technology accounts for a 0.24% share in QQQ and has a Zacks ETF Rank #4 (Sell). It has a Growth Score of A.
Lucid Group is an automotive company, which specializes in electric cars. It gained 5.6% last week and accounts for 1.1% in the fund’s basket.
Lucid Group is expected to see an earnings growth of 10.2% for this year and has a Zacks Rank #4.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report