QQQM (QQQM)
Diversified Equity • Large Growth
Market Cap: $70.10B
Last updated: Sep 01, 2026 at 10:00 AM ET
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Growth
QQQM (QQQM)
Large Growth • USA
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Holdings (102)
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3 Shocking Facts Smart & Safe Investors Need To Know
The stock market is within 2% of record highs, yet fears about AI bubbles and falling margins and even rising unemployment have investors on edge. Earnings growth was almost 14% this quarter, 2X what was expected AND earnings growth is expected to accelerate for the next year (14.5% in 2026 and 17.5% by Q4 2026). Margins are expected to go from a record 12.9% today to around 15% next year BUT investors are already worried about a potential 1% dip in future margins from 15% to 14% (still 1% above current records!). Technology has 28% net margins (that are up 5% in the last year) and yet we worry that AI spending isn't profitable? Tech earnings just grew 29% YOY and are expected to grow 25% next quarter. The Nasdaq's historical earnings growth was 10% and from 2023 through 2027 is expected to be closer to 20%, with the S&P posting 4 consecutive years of double-digit growth. Double digit growth in 2028 would be the first time in history for 5 consecutive years of EPS growth (preliminary, non consensus estimates 11%) with the strongest growth estimate momentum in 4 years. The modest 2% pullback in the S&P and 6% pullback in the Nasdaq has the PEGY ratio on the S&P at 1.03 (22% historical discount) and 0.96 (also 23% discount) respectively. That's literally bear market low margins of safet Morningstar's DCF estimates for the S&P and Nasdaq (bottom up) indicate a 2% and 6% discount respectively, with 17% and 24% upside potential over the next 12 months. PEGY fair value indicates about 44% upside.
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