Stocks gave investors much to be thankful during Thanksgiving Week, as highlighted by a 5.79% rally the Nasdaq-100 Index (NDX).
That’s good news for the NDX-tracking Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM), but the impressive final week to November is now in the rearview mirror. Investors are focusing on what markets will do in the final month of 2025 while sizing up opportunities for next year. QQQ and QQQM merit consideration as funds to consider over the last month of this year and as potential winners over the course of 2026.
The two Invesco ETFs are homes to some stocks experts view as ideal holiday “gifts” for patient investors. Better yet, some of those names sport the wide moat label, confirming the long-term durability of QQQ and QQQM.
QQQ Could Be the Bearer of Gifts
QQQ and QQQM are often proxies on the large-cap artificial intelligence (AI) trade, and valid ones at that. However, the ETFs are also homes to some wide moat names from non-tech sectors. Those stocks include some with rebound potential, such as consumer staples giant PepsiCo (PEP).
The company behind Doritos, Gatorade and a slew of other popular brands has seen its shares lag this year, but the stock, which is one of the largest staples holdings in QQQ and QQQM, could be an undervalued play with rebound potential.
“Growth has stalled during the past couple of years due to sluggish performance in its snacks business, but we think the stock is a good long-term buy, as a new emphasis on health-focused product innovation and cost-cutting should bear fruit in the coming decade. We think Pepsi’s stock is worth $166 per share,” observed Morningstar’s Susan Dziubinski.
In terms of stocks with which QQQ and QQQM are more synonymous and those with deep ties to the AI trade, Google parent Alphabet (GOOGL) is another example of a wide moat firm that could drive upside for these ETFs in December and beyond. As things stand today, Alphabet, one of the ETFs’ biggest communication services holdings, is already on a tear.
“We view Alphabet today as a conglomerate of successful businesses that range from advertising to cloud computing to self-driving cars,” added Dziubinski. “Antitrust concerns around the search business have made headlines, but we’re confident that the company will remain at the forefront of many businesses over the long term, including search, AI, video, and cloud computing. We think Alphabet’s stock is worth $340.”
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