Sign InSummary
As of June 22, 2023, the Invesco QQQ Trust (QQQ) has shown strong technical and fundamental indicators, including a bullish Relative Strength Index and Moving Average Convergence-Divergence, solid earnings performance, and a positive long-term trend, suggesting the ETF is likely to continue to gain and potentially surpass its last closing price of 366.17.
Introduction
Invesco QQQ Trust (QQQ) is an Exchange-Traded Fund (ETF) that tracks the performance of the NASDAQ-100 Index, representing large-cap growth stocks from various sectors such as technology, healthcare, and consumer services. This analysis evaluates QQQ's technical and fundamental aspects, its recent performance, and future prospects to provide an investment recommendation.
Technical Analysis
QQQ closed at 366.17 on June 22, 2023, with a 1.18% increase. The ETF reached a high of 366.32 and a low of 360.23 during the trading session. The 14-day Relative Strength Index (RSI) is at 66, signaling bullish momentum. QQQ's 50-day moving average is 334.67, indicating a strong uptrend, while the 200-day moving average stands at 299.00, further emphasizing a positive long-term trend. The ETF's Moving Average Convergence-Divergence (MACD) value of 11.86 also shows a bullish signal, with its rising trajectory.
Fundamental Analysis
With a market capitalization of $143.94 billion, QQQ has a price-to-earnings ratio (PE) of 29.86, which compares well to its underlying assets on the NASDAQ-100. The ETF has a trailing twelve-month (TTM) earnings per share (EPS) of 12.26, showcasing solid fundamentals and earnings performance.
Recent News
QQQ's recent performance is supported by relevant news stories highlighting the tech sector's strong growth. As the NASDAQ Composite reached its highest level in 2023, QQQ is anticipated to soar further. Despite considerable gains this year, tech stocks are not yet at levels comparable to the dot-com bubble, and strong earnings growth will likely propel them higher.
Additionally, a recent surge in the NASDAQ-100 has raised questions of a potential pullback. However, market recovery in 2023 has been largely driven by names like QQQ, with growth spurred by a handful of industry-leading names. Considering these developments, QQQ is expected to continue riding the wave of positive momentum.
Price Predictions
Assuming no drastic changes in market conditions, QQQ is expected to trade higher on the following trading day, June 23, 2023, with potential gains beyond the last closing price of 366.17.
