NASDAQ100 Index Fund Introduction


The NASDAQ 100 has historically been regarded as the tech-laden index & has seen a constant upward trends over the last 5 years, with the following ticker symbols, AAPL, MSFT, GOOG & GOOGL, NVDA, AMZN, META leading the charge to trillion dollar valuations. But is there still value in the index, if one is to look more closely to it ‘without’ the aforementioned ticker symbols. That is usually a hypothetical but what if it wasn’t. What if we were to trade the individual stocks within the NASDAQ 100 based on merit. Is value for 3x, 4x, or 7x returns still lingering about?

Standalone Contender

BIIB (Biogen Inc) - $234.50 The long and short of it is, there are some serious contenders within the index, I mean, the stocks contained, have earned their right to be in it. So there must be value right? Let’s take the ticker symbol BIIB (Biogen Inc), which is trading at $203.77 at the release of this article, hasn’t seen the highs it saw during the pandemic back in 2021 and has largely been down since with a 5 year outlook down 13.06% from $234.50 to its current price. With highs of $396.64 in June 2021. So is the stock overvalued or undervalued? I won’t get into too much detail about their current day to days like their Alzheimer’s drug push or the delays with its approval by the FDA but, this stock seems to have corrected from the bullish run it had during the pandemic when anything biotech was seen as Falcon 9 carrying a payload to the ISS every other week.

Another Contender

ADSK (Autodesk) - $244 What of the ticker symbol ADSK (Autodesk), pioneers of CAD that has been in existence since 1982, with a market valuation of $52.7 billion, had highs $334.88 during the pandemic but has since trickled down to the $244 on the day of this article. It has seen a 48% jump in the last 5 years and with its diversified revenue streams from 3D printing, to software being used varied industry disciplines, safe to say a prime hedging stock option. Despite seeing some corrections pushing the price back down to late Q4 2023 resistance lines, the company has analysts predicting an average share price target of $283.1 for 2024 with a high average price target of $320 and a low estimate of $230 as per Benzinga. Meaning the is still some active price movements that could see some individual investment benefits.

Personal Take

But these are just two stocks, with most of the index being weighted on consistent reevaluations annually, it is still seen as a good long hold if one thinks of dipping into index investing.

What Does This All Mean?

The index itself, is up 140.32% as of this article in the last 5 years, signalling a solid gain for a long-term bullish approach for the index. Keep in mind, this is a gradual increase not a typical Bitcoin, ‘shoot to the moon’ adage, attached to most meme stocks. This is a long term outlook based investment opportunity, and still remains a must have, for the steady hand that is looking into a ROI, in terms of years and not hours or days, or even earning reports. Though they do provide valuable insight. Slow and steady always seems to win the race after all.

Posted in Stocks on Apr 07, 2024