The Zacks Analyst Blog Highlights Invesco QQQ Trust, Palantir, NVIDIA, Home Depot, S&P 500 Pure Value Invesco ETF and Morningstar Dividend Leaders ETF

For Immediate ReleaseChicago, IL – August 21, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Invesco QQQ Trust QQQ, Palantir PLTR, NVIDIA NVDA, Home Depot HD, S&P 500 Pure Value Invesco ETF RPV and Morningstar Dividend Leaders ETF FDL.Here are highlights from Wednesday’s Analyst Blog:Time for a Sector Rotation Away from Tech? ETFs in FocusU.S. stocks slipped on Aug. 19, 2025 following a sharp decline in tech shares. The tech-heavy Nasdaq-100-based exchange-traded fund Invesco QQQ Trust lost 1.4% on Aug. 19, 2025. The pressure came after weakness in stocks like Palantir and NVIDIA weighed on the broader market on Tuesday. PLTR shares slumped 9.4% and NVIDIA shares retreated about 3% on Aug. 19, 2025.Palantir shares surged more than 150% from their April low heading into its second-quarter earnings, when the company reported quarterly revenue above $1 billion for the first time. However, data from Barchart showed that Tuesday’s decline marked the stock’s longest losing streak since March, as quoted on Yahoo Finance.Shift Away from Big Tech?Investor enthusiasm for Big Tech appears to be fading, with other sectors beginning to show renewed strength. The broader market rally is starting to show signs of rotation beyond Big Tech, the Yahoo Finance article indicated.Home Depot added some optimism after reporting earnings that showed a boost in U.S. sales, pushing its stock price higher. The HD stock advanced 3.2% on Aug. 19, 2025.Is AI Market Forming a Bubble?OpenAI CEO Sam Altman has recently suggested that the artificial intelligence (AI) industry is currently experiencing a bubble fear, as quoted on CNBC. He indicated that while AI represents one of the most significant technological shifts in decades, the AI euphoria has led to overinflated expectations from investors.Altman sees similarities between the current environment to the dot-com boom of the late 1990s, which was hit hard when many Internet companies failed to materialize the euphoria into profits.The concerns intensified earlier this year when the “Magnificent Seven” had fallen from grace due to the rise of cheaper-cost AI companies (e.g., DeepSeek) and individual Big Tech companies’ ability to handle broader macro uncertainty.The AI development at Big Tech has raised questions among some investors about whether current spending levels in AI are sustainable. Despite ChatGPT-Fame OpenAI’s huge success and its annual recurring revenue projection to top $20 billion this year, the company remains unprofitable.Nasdaq-100 ETF in FocusMost AI biggies have exposure to the Nasdaq-100-based ETF Invesco QQQ Trust, Series 1. The P/E ratio of QQQ stands at 59.27X. The 10-year range of the P/E ratio is 19.7X to 59.46X. The median P/E of the past 10 years is 25.8X. This shows the overvaluation concerns associated with QQQ.However, the price-to-book (P/B) ratio of QQQ is currently 3.6X, which is the lowest value considering the past 10-year range. The 10-year median P/B is 6.03X, per Gurufocus.com.Hence, the sudden crash of AI euphoria (if there is any) may not hurt QQQ that hard. Still, investors should be mindful of relentless AI investing going forward. Their portfolio may need diversification at the current juncture.Rely on Safe Sector Consumer StaplesThis is a safe sector as it is non-cyclical in nature. The consumer staples sector tends to do well even amid economic growth slowdown and high inflation. Since consumers have to buy staples products even if they cut back on their discretionary spending, big manufacturers of food and beverages normally have the power to pass on the increase in costs to customers. This puts focus on iShares U.S. Consumer Staples ETF (read: Invest Like Warren Buffett With These ETFs).Value ETFs At a One-Month HighValue stocks normally offer investors stability due to lower valuations and steady dividends. They can outperform during periods of market rotation away from high-growth sectors. In a volatile market, dividend ETFs normally come to rescue.The hunt for dividends in the equity market is always on, irrespective of how it is behaving. Probably this is why, S&P 500 Pure Value Invesco ETF and Morningstar Dividend Leaders ETF have hit a one-month high lately.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Zacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Free Report: 3 Software Stocks Poised to SkyrocketSoftware stocks are poised to catapult higher in the coming months (and years) thanks to several factors, especially the explosive growth of AI. Zacks' urgent report reveals 3 top software stocks to own right now.Access the report free today >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports First Trust Morningstar Dividend Leaders ETF (FDL): ETF Research Reports Invesco S&P 500 Pure Value ETF (RPV): ETF Research Reports Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks