In this article, we will explore the top 16 most promising stocks in the QQQ according to hedge funds. If you’re interested in skipping our analysis of recent trends and market activity, you can head straight to the 5 Most Promising QQQ Stocks According to Hedge Funds.
The Invesco QQQ Trust (NASDAQ:QQQ) is an exchange-traded fund that tracks the performance of the Nasdaq-100 Index. This index consists of 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The index is rebalanced quarterly and reconstituted annually. As of December 18, nearly half of the fund’s portfolio was allocated to the Information Technology sector with a weightage of 49.7%, followed by 14.9% for Communication Services, and 14.6% for Consumer Discretionary.
The Invesco QQQ Trust (NASDAQ:QQQ) is designed to provide investors with exposure to the largest and most actively traded stocks on the NASDAQ. It is one of the most popular ETFs in the United States with nearly $227 billion in assets under management as of December 18. Over the past decade, the Invesco QQQ Trust (NASDAQ:QQQ) has outperformed the S&P 500 nine out of ten times.
The index has performed well this year, driven by major technological advancements and operational measures by its components. One significant development in the technology space this year has been generative artificial intelligence, which has the potential to disrupt various aspects of our lives in the coming years. Companies like NVIDIA Corporation (NASDAQ:NVDA) have benefited greatly from this advancement, with their share prices up nearly 236% year-to-date. The Nasdaq-100 as a whole has gone up nearly 54% year-to-date, compared to around 24% for the S&P 500 Index.
Our list of the 16 most promising QQQ stocks according to hedge funds includes some of the biggest names in the stock market, with several trillion-dollar companies. These companies make up 51.5% of the ETF portfolio weightage as of December 18. Factors contributing to their success include cost-cutting measures, the AI revolution, and macroeconomic factors like the slowdown in interest rate increases. Some of the companies on this list include NVIDIA Corp (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA).
We analyzed the hedge fund sentiment for each stock by looking at the holdings of the Invesco QQQ Trust (NASDAQ:QQQ) and sourcing data from Insider Monkey’s database, which tracks 910 elite money managers. We selected stocks that were widely held by hedge funds and ranked them based on the number of hedge funds with positions in them.
One of the companies on our list is T-Mobile US, Inc. (NYSE:TMUS), a wireless network operator based in Bellevue, Washington. It has 79 hedge fund holders and is working on initiatives to return value to stockholders, including share repurchases and dividends. Another company on our list is Tesla, Inc. (NASDAQ:TSLA), which has 81 hedge fund holders and is known for its electric vehicles and energy solutions.
These are just a few of the promising stocks in the QQQ that hedge funds are keeping an eye on. The market continues to evolve, driven by technological advancements and strategic moves by companies in various sectors. (NASDAQ:MU) and raised the price target to $120 from $110, citing strong demand for memory and storage solutions.
As of Q3 2023, 90 hedge funds out of the 910 tracked by Insider Monkey held Micron Technology, Inc. (NASDAQ:MU) shares valued at $7.0 billion. The largest shareholder was Fisher Asset Management with ownership of 16.7 million shares valued at $1.3 billion.
9. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 91
The Procter & Gamble Company (NYSE:PG) is a multinational consumer goods corporation headquartered in Cincinnati, Ohio. It offers a wide range of products including personal care, cleaning agents, beauty, and grooming products. The company’s brands include household names such as Pampers, Gillette, Tide, Head & Shoulders, and Olay.
On October 19, The Procter & Gamble Company (NYSE:PG) announced its financial results for the quarter ended September 30, 2023. It reported a revenue of $22.7 billion, up 4% y-o-y, and a net income of $3.2 billion. The company also increased its quarterly dividend by 10% to $0.87 per share.
Following the earnings release, J.P. Morgan analyst Andrea Teixeira raised the price target for The Procter & Gamble Company (NYSE:PG) shares to $185 from $175 and maintained an ‘Overweight’ rating.
According to Insider Monkey data, 91 hedge funds held shares of The Procter & Gamble Company (NYSE:PG) as of Q3 2023, with a total value of $6.5 billion. The largest shareholder was Fisher Asset Management with ownership of 6.9 million shares valued at $1.0 billion.
8. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 95
NVIDIA Corporation (NASDAQ:NVDA) is a leading global technology company focused on graphics processing units (GPUs) and artificial intelligence (AI). It provides GPUs for gaming, professional visualization, data centers, and automotive markets. NVIDIA’s AI computing platform powers a wide range of applications from autonomous vehicles to healthcare to robotics.
On November 16, NVIDIA Corporation (NASDAQ:NVDA) reported its financial results for the third quarter ended October 30, 2023. It posted a revenue of $7.1 billion, up 50% y-o-y, and a net income of $2.4 billion. The company also announced a 4-for-1 stock split.
Following the earnings release, Mizuho analyst Vijay Rakesh raised the price target for NVIDIA Corporation (NASDAQ:NVDA) shares to $420 from $395 and maintained a ‘Buy’ rating.
According to Insider Monkey data, 95 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA) shares as of Q3 2023, with a total value of $16.4 billion. The largest shareholder was Fisher Asset Management with ownership of 13.1 million shares valued at $3.7 billion.
7. Adobe Inc. (NASDAQ:ADBE) add to our position, as we believe Apple’s stock remains undervalued given its long-term growth prospects.”
Overall, the tech industry continues to show promise with companies like Micron Technology, Inc. (NASDAQ:MU), Netflix, Inc. (NASDAQ:NFLX), Advanced Micro Devices, Inc. (NASDAQ:AMD), Adobe Inc. (NASDAQ:ADBE), and Apple Inc. (NASDAQ:AAPL) leading the way. With hedge funds continuing to show interest in these stocks and analysts maintaining high target prices, investors may want to keep a close eye on these companies for potential investment opportunities.
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