5 Top-Ranked Stocks of Nasdaq ETF Beating the Bear Market

The tech-focused Nasdaq officially entered bear market territory on Friday, falling over 20% from its December peak. For the week, the Nasdaq was down 8.6%. The plunge came as Wall Street grew increasingly anxious about the economic health amid President Donald Trump’s tariff announcement. Fidelity NASDAQ Composite Index ETF ONEQ slumped 19.1% so far this year and the fund is off 4% over the past one year.

A recent survey by the American Association of Individual Investors showed that about 62% of respondents now expect market declines over the next six months — the most pessimistic reading in over a year. With stock prices sinking and both consumer and corporate confidence deteriorating, financial experts are foreseeing a global growth slowdown.

Beyond Tariffs, What Caused Pain in Nasdaq?

Technology stocks led the bloodbath. Apple AAPL plunged 7% on April 4, extending its weekly loss to 13%. NVIDIA NVDA, a major force in artificial intelligence, fell 7%, while Tesla (TSLA) sank 10%. With substantial exposure to China, all three companies were hit hard by Beijing’s retaliatory tariffs. But there’s more to the losing story.

We all know that Big Tech companies have poured billions into data centers and AI chips to support the growth of AI models. However, concerns are mounting that the investment boom is outpacing demand.

The China’s DeepSeek threat made matters worse. Investors should note that DeepSeek, a Chinese startup developing AI models, grabbed headlines with the release of its new R1 model (which is low-cost in nature) in late January.

This raises important questions about AI investment and the potential rise of more cost-efficient AI agents, which has weighed on Big Tech companies that have already invested billions in AI.

5 Top-Ranked Stock Standouts in the Nasdaq ETF Bear Market

Against this backdrop, we highlight several standout performers from the Nasdaq Composite that have delivered strong gains this year. While the Nasdaq Composite struggles in a bear market, these top-ranked stocks are beating the trend. Backed by a Zacks Rank #1 (Strong Buy) or #2 (Buy), they show potential for further rally.

ThredUp TDUP – Zacks Rank #2

ThredUp Inc. provides resale platforms for women's and kids' apparel, shoes and accessories.

YTD Price Change: Up 86.5%

One-month Price Change: Up 11.4%

908 Devices MASS – Zacks Rank #1

908 Devices Inc. is a purpose-built handheld and desktop mass spec devices for chemical and biomolecular analysis. It conducts research, designs and manufactures products of mass spectrometry, microfluidic separations, software automation and machine learning.

YTD Price Change: Up 73.9%

One-month Price Change: Up 38%

Logility Supply Chain Solutions Inc. LGTY – Zacks Rank #2

Logility Supply Chain Solutions Inc. is a provider of AI-first supply chain management solutions engineered to help organizations build sustainable digital supply chains.

YTD Price Change: Up 29.9%

One-month Price Change: Up 0.70%

Palomar Holdings PLMR– Zacks Rank #1

Palomar Holdings is an insurance holding company that was incorporated in Delaware in March 2019.

YTD Price Change: Up 27.7%

One-month Price Change: Up 4.5%

EZCORP EZPW– Zacks Rank #1

Ezcorp Inc. is engaged in establishing, acquiring, and operating pawnshops which function as convenient sources of consumer credit and as value-oriented specialty retailers of primarily previously owned merchandise.

YTD Price Change: Up 25.7%

One-month Price Change: Up 14.2%

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This article originally published on Zacks Investment Research (zacks.com).

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