Wall Street has been struggling in recent weeks amid tariff escalations and concerns over a slowdown in the economy. Notably, the Nasdaq Composite Index has entered correction territory after declining 2.6% on March 6, down 10% from its record high on Dec. 16. Additionally, renewed concerns about spending on artificial intelligence added to the chaos for the tech-heavy index.
Invesco QQQ QQQ, which serves as a proxy to the index, also entered into correction territory, dropping 10.8% from its recent peak. As such, several stocks have incurred heavy losses since the start of this year. Below, we have highlighted five such stocks from the ETF that were hit badly but might reverse the trend, given their solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and positive earnings estimate revisions in a month, suggesting bright prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
These stocks are Marvell Technology MRVL, PayPal PYPL, AppLovin Corporation APP, NVIDIA Corporation NVDA and Lululemon Athletica Inc. LULU.
The ongoing tariff threats and the reversing of the same have raised worries about the trade policy that might lead to global war. The rounds of U.S. tariffs and the retaliation will hurt U.S. consumers, driving up the prices of goods and curtailing spending. It will further impact the worldwide economy and corporate profits, particularly for big U.S. exporters. All these will continue to weigh on the stock market and can disrupt global supply chains (read: Trade War Fears Surge: Sector ETFs & Stocks to Watch Out For).
Further, the barrage of data indicates that the U.S. economy is slowing down. The Federal Reserve’s Beige Book and the Institute for Supply Management’s manufacturing reading indicated fear of rising input costs, weighed down by Trump's tariff policies. The manufacturing sector slowed and business activity stalled in February. Consumers are losing confidence in the economy.
The Nasdaq index took a further hit as semiconductor stocks tumbled, led by a decline in Marvell Technology. The stock plunged nearly 20% after the chipmaker's current-quarter outlook fell short of lofty expectations and sparked renewed worries about the artificial intelligence trade.
Let’s take a closer look at the fundamentals of QQQ.
QQQ in Focus
This ETF provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 59.5% of the assets while consumer discretionary makes up for 20.2% share.
QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $313.5 billion and an average daily volume of 29 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook (read: Should You Buy the Dip in Nasdaq ETFs?).
Bargain Stocks of QQQ
Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal-processing integrated circuits. The stock has plunged about 35% since the start of the year and accounts for 0.5% in the fund’s basket. Marvell Technology saw a solid earnings estimate revision of 3 cents over the past month for the fiscal year (ending January 2026) and has an expected earnings growth rate of 29.01%. The stock currently has a Zacks Rank #2 and a VGM Score of B.
PayPal has emerged as one of the largest online payment solutions providers on the back of its strong product portfolio and its two-sided platform that enables it to offer smooth and secure transaction facilities to both customers and merchants. The stock has tumbled about 20% in the same time frame and makes up for 0.4% allocation in the QQQ portfolio. PayPal saw a solid earnings estimate revision of 11 cents over the past 30 days for this year, with an estimated earnings growth rate of 8%. It presently has a Zacks Rank #2 and a VGM Score of B.
AppLovin provides a technology platform that enables developers to market, monetize, analyze and publish their apps. This stock makes up 0.6% share in the fund’s basket and has shed about 20% of its value in a month. The company witnessed a positive earnings estimate revision of 73 cents for this year and its earnings are estimated to grow 51.7%. The stock currently has a Zacks Rank #1 and a VGM Score of B.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU. The stock has plunged about 18% in the same time frame and accounts for 7.6% allocation. NVIDIA saw a solid earnings estimate revision of 18 cents over the past 30 days for the fiscal year (ending Jan 2026) and has an expected earnings growth rate of 46.8%. It presently has a Zacks Rank #2 and a VGM Score of B (read: AI Blackwell Chips Fuel NVIDIA's Q4 Earnings: ETFs to Buy).
Lululemon is a yoga-inspired athletic apparel company that creates lifestyle components. The company designs, manufactures and distributes athletic apparel and accessories for women, men and female youth. The stock has seen a positive earnings estimate revision of 4 cents over the past 30 days for the fiscal year (ending January 2026) and has an expected earnings growth rate of 7.1%. Lululemon makes up for 0.3% allocation in QQQ and has lost about 9% in a month. The stock currently has a Zacks Rank #2 and a VGM Score of D.
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