On February 28, UBS’ Alli McCartney joined CNBC’s ‘Power Lunch’ to analyze the market’s reaction to the tariff announcements. McCartney referred to the situation as tariff policy ping pong, and highlighted how it adds to the uncertainty in Washington during a time when weak data is emerging from other areas. She explained that this has created a perfect storm of challenges, which includes seasonal pressures that make this time of year difficult. Retail buyers have stepped away from the market, and there is uncertainty for individuals regarding tax policy and for corporations concerning tariffs and taxes. The withdrawal of overleveraged bids has contributed to increased market volatility, which makes it harder for major tech companies to maintain their leadership roles.
The conversation then turned to the influence of key sectors, particularly the MAG7. McCartney noted that when these sectors underperform, they can generate downside pressure on the market, which contrasts with the desire for a broader market trade. She pointed out that while these tech stocks are down year-to-date, the overall market remains materially up and is annualizing at a high single-digit rate. She expressed optimism about market breadth and suggested that this could present a buying opportunity for investors to re-enter big tech.
Tech stocks face short-term volatility due to market uncertainty, but their long-term potential remains intact. In this context, we’re here with a list of the 12 best QQQ stocks to invest in now.
Methodology
We sifted through the Invesco QQQ exchange-traded fund (ETF) holdings to find 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best QQQ Stocks to Invest in Now
12. Costco Wholesale Corp. (NASDAQ:COST)
Number of Hedge Fund Holders: 96
Costco Wholesale Corp. (NASDAQ:COST) is a global retail giant that operates membership warehouses that offer several products and services. These range from groceries and electronics to gasoline and pharmacies, available in both physical locations and online.
The company’s core merchandising business, particularly its non-foods category, is a significant driver of revenue. In FQ2 2025, non-foods comparable sales increased by mid-teens percentages. This growth was fueled by strong sales in big-ticket consumer electronics, such as 98-inch and 100-inch TVs, as well as items like Stern pinball machines and gaming computers. Other double-digit growth areas within non-foods included gold and jewelry, gift cards, toys, housewares, appliances, sporting goods, home furnishings, and small electrics.
Costco Wholesale Corp. (NASDAQ:COST) reported that in February, non-foods were up positive low teens, with jewelry, gift cards, and housewares as better performing departments. Net sales for February came in at $19.81 billion, which is an 8.8% year-over-year increase. The company’s buying teams are introducing new and appealing products at competitive prices, while prioritizing the expansion of the company’s Kirkland Signature private label offerings.
Madison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q3 2024 investor letter due to the company’s commitment to sustainability:
“Costco Wholesale Corporation (NASDAQ:COST) continues to demonstrate its commitment to sustainability by lowering its emissions. For example, it has converted its Kirkland Signature laundry packs from plastic tubs to a pouch. This has reduced plastic packaging by 80%. It has also moved to localize production of bulky items such as water, paper, and laundry detergents. Manufacturing these goods closer to the countries in which they are sold reduces emissions associated with shipping.”
11. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) is an online travel and restaurant reservations company. Through its Booking.com, Priceline, Agoda, KAYAK, and OpenTable platforms, it offers services like accommodation, flight, rental car, restaurant reservations, and related travel and advertising services.
The company is expanding its connected trip vision. It aims to create a seamless and personalized travel experience by integrating all aspects of travel planning and booking into a single platform. In Q4 2024, the connected trip transaction growth accelerated to over 45% year-over-year. This represents a high single-digit percentage of the company’s total transactions.
The company’s flight offerings fuel this vision. In 2024, travelers booked ~50 million airline tickets across its platforms, which was a 38% year-over-year increase. Merchant offerings are also critical as merchant gross bookings reached 59% of the company’s total gross bookings. The Genius loyalty program is also integral as travelers in the higher tiers (Levels 2 and 3) represented over 30% of active travelers. Booking Holdings Inc. (NASDAQ:BKNG) plans to continue investing in these areas and utilize GenAI to further enhance the connected trip experience.
Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2024 investor letter:
“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”
