Sign InInvesco QQQ Trust (QQQ) Stock: Fundamental and Technical Analysis, Recent News, and Recommendations
Summary
As of September 07, 2023, the Invesco QQQ Trust stock (QQQ) is prestigious among market participants with a high Price/Earnings ratio, and despite a slight drop in price, the stock is expected to have an upward move in the next trading session, making it a 'hold' recommendation for now based on the fundamental and technical analysis. (Date of analysis: September 07, 2023)
Fundamental Analysis
Invesco QQQ Trust, trading under the ticker QQQ on NASDAQ, has a market capitalization of approximately $146.26 billion and, as of September 07, 2023, has 393.10 million outstanding shares. QQQ has a well-regarded EPS of $12.26 per share, resulting in a Price/Earnings ratio of 30.34, suggesting it is prestigious among the market participants.
While P/E ratio can be used to compare the company's stock price to its earnings, it should be noted that this is a relative measure, and different industries come with varying averages. Considering this, market participants regard the stock with high esteem due to its high P/E ratio.
Technical Analysis
The QQQ closed at $372.06 on September 07, 2023, experiencing a drop of $2.68 or 0.72%. The stock's 52-week range is $254.26 (year low) to $387.98 (year high), signaling a significant upward trend over the past year. The average volume was about 51.10 million shares, while the volume on the closing day was slightly above average volume, reaching about 51.76 million shares.
Looking at the moving averages, the 50-day Moving Average sits effectively at the last closing price at $372.03, while the 200-day Moving Average remains significantly lower at $323.46. This suggests a strong upward trend in the longer term. Moreover, signal indicators such as 65 RSI and a negative MACD of -3.14 may reflect that the stock is neither oversold nor underbought and presents a short-term bearish view, respectively. Nevertheless, with $359.89 as a stop-loss point, and $367.93 (support) & $374.39 (resistance) continuing as key pivot points, judicious monitoring of these levels is crucial.
Recent News and Events
The news and events surrounding QQQ are cautiously optimistic. One recent report points out QQQ as one of the "3 Best ETFs to Buy Now" indicating a positive sentiment towards QQQ. Furthermore, news of "QQQ and QQQM: Best and Worst of the Magnificent 7 (Technical Analysis)" suggested potential shifts in market rewards. Any potential shifts could have significant implications for the trajectory of QQQ's stock price.
Predictions and Recommendations
Provided the close proximity to the support level and considering the upward momentum reflected by the 50-day and 200-day moving averages, the chances of an upward move in the next trading session, dated September 08, 2023, seem promising.
On a weekly perspective, the market trends and news imply a cautious but optimistic view. Although there has been a slight bearish signal from the MACD, it remains to see whether this could be a mere market correction or a reversal in the uptrend.
In summary, given the detailed fundamental and technical analysis, as well as recent news concerning Invesco QQQ Trust, it is reasonable to categorize the QQQ stock as a 'hold' for now. This acknowledgement depends on the upward trend reflected in the moving averages and the slightly bearish short-term signals. It is fundamental to re-evaluate this recommendation regularly based on updated market conditions, news and the overall economic scenario. The reader should also consider their investment strategy and risk tolerance.
