3 magnificent Nasdaq 100 and QQQ ETF stocks to buy now

The Nasdaq 100 index and Invesco QQQ ETF have had a strong performance this year, helped by the so-called Magnificent 7 companies. The two have jumped by more than 41% this year, adding over a trillion in value. Most of their constituents have jumped this year. Here are some of the best Nasdaq 100 index companies to buy.

Lululemon Athletica

Lululemon Athletica (NASDAQ: LULU) is a leading retail company that focuses on athleisure apparel for yoga, running, and other workouts among others. It is a Canadian company valued at over $48 billion and generates over $8.5 billion in annual revenue.

Lululemon Athletica revenue has made a spectacular growth over the years. In the most recent report, the company said that its revenue jumped by 24% from the same period in 2022. Women’s business was up by 22% while men jumped by 17%. As we wrote here, its China revenue jumped by 79% in Q1.

Lululemon is a good investment because of its growing revenue and profitability. Its net income jumped from over $483 million in 2019 to over $955 million in the trailing twelve months (TTM). Its profits are expected to come in at over $1 billion. It is also has a strong balance sheet, with just $1 billion in debt.

Lululemon stock has jumped by 16.4% this year, underperforming the Nasdaq 100 index and the QQQ ETF.

Workday

Workday (NASDAQ: WDAY) is a technology company that provides services like finance, human resources, and planning. The company has been growing over the years. Its total revenue jumped from over $2.82 billion in 2019 to over $6.46 billion in the TTM. 

In its most recent results, the company’s revenue rose by 17.40% to over $1.68 billion. Its subscription revenue rose by 20% to $1.53 billion while the twenty-four-month subscription backlog jumped to $9.79 billion. Also, the operating cash flow came in at over $277 million.

Workday is a good investment because of its strong revenue growth, predictable subscription growth, and lower churn.

Starbucks

Starbucks (NASDAQ: SBUX) stock price has risen by just 1.30% this year, underperforming the Nasdaq 100 index. Despite this underperformance, the stock has jumped by more than 52% from the lowest level in 2022.

Starbucks stock price was in the spotlight this week after it published mixed financial results, with its Chinese business struggling. In all, the company’s revenue came in at $9.17 billion, missing analysts’ estimates by $113 million.

Its operating margin expanded by 50 basis points while North America’s revenue jumped by 11% to a record high of over $6.7 billion. 

Starbucks is a good investment because of its strong market share, higher revenue growth, and strong profitability growth. Most analysts have a positive outlook of the stock, with those at Stephens, Cowen, and Morgan Stanley reiterating their bullish view.