As has been widely reported, 2022 was unkind to growth stocks and that’s readily apparent with the NASDAQ-100 Index (NDX), which entered this week sporting a year-to-date decline of 32.80%.
In simple terms, plenty of stocks residing in exchange traded funds such as the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are slumping in 2022. A bright spot is that many sell-side analysts remain constructive on a slew of NASDAQ-100 components, meaning there could be ample opportunity in 2023 for QQQ and QQQM to rebound.
In fact, relative to current analyst price targets, some NDX member firms need to double to meet those price objectives, indicating significant 2023 upside could be afoot for QQQ and QQQM because both Invesco ETFs follow the NASDAQ-100 Index. Elon Musk’s Tesla (NASDAQ:TSLA), which is the second-largest consumer discretionary holding in the ETFs at a weight of 2.74%, is among the NASDAQ stocks that could be in resurgence mode next year.
“Retail investor favorite Tesla has been among the most talked about stocks with CEO Elon Musk’s purchase of Twitter. Nearly half, or 48.8%, of analysts rate the stock a buy, with the average price target implying the stock could rally 115.2% over the next year. The stock has lost 64.4% in 2022,” reported Alex Harring for CNBC.
Following a brutal run in 2022, several semiconductor stocks could be looking to better things in 2023. Among the QQQ and QQQM components that currently offer significant upside potential relative to consensus price targets are Advanced Micro Devices (NASDAQ:AMD) and Qualcomm (NASDAQ:QCOM). That duo combines for over 2% of the ETFs’ rosters.
AMD “could rally 37.6%, based on the average analyst price target. The chip maker surpassed Intel by market cap for the first time ever this year. But the stock has still fallen 55.6% this year as global supply challenges continued weighing on chip production and demand concerns grew with consumer spending shifting to services from goods. About two-thirds, or 66.7%, of analysts rate the stock a buy,” according to CNBC.
Zoom Video Communications (NASDAQ:ZM), a smaller QQQ and QQQM holding that rose to acclaim during the coronavirus shutdowns that forced so many people to work from home, tumbled mightily this year as more employees returned to the office, but some on Wall Street believe the tech name can bounce back in 2023.
Zoom “has an average price target showing it could gain 31.2%. After two years of rapid growth as the pandemic shifted meetings to virtual venues, the stock has plunged 64.2% this year. The company said it expects weaker-than-anticipated revenue for the full fiscal year on its third-quarter earnings call last month,” concluded CNBC.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
