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The tech-heavy Nasdaq Composite Index has turned from an outperformer to a laggard. This is especially true as the broad technology sell-off lately eroded all the gains made this year and sent the index into red. In fact, the Nasdaq is down nearly 10.6% from its February peak, signaling that it hit the correction territory.

The plunge was the result of a spike in Treasury yields, which led to fears of overvaluation in the tech stocks after an astounding performance during the pandemic. The technology sector has eroded about $1.5 trillion in less than a month. This is especially true as the sector relies on easy borrowing for superior growth and its value depends heavily on future earnings. Thus, a rise in long-term yields lowers the present value of companies’ future earnings. The 10-year yield, which began in 2021 at 0.930%, hit a high of 1.614% on Feb 25 and is currently hovering around 1.60%.

In fact, the S&P 500 Information Technology Sector Index has been down 8.2% over the past month. The other sector with the largest exposure to the Nasdaq Index — consumer discretionary — is also beaten down badly in the tech rout. The S&P 500 Consumer Discretionary Sector Index declined 9.8%.

As a result, Invesco QQQ (QQQ - Free Report) , which serves as a proxy to the index, also entered into a correction territory, dropping 13% from its February peak. Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 47.7% of the assets while communication services and consumer discretionary make up at least 18% share each.

QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $143.3 billion and average daily volume of 37.2 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

A number of stocks have incurred heavy losses over the past month. Below, we highlighted five such stocks from the ETF that were hit badly in the tech rout but might reverse the trend, given their solid Zacks Rank #1 (Strong Buy) or 2 (Buy) and positive earnings estimate revisions in a month, suggesting bright prospects.

Below we highlighted these five bargain stocks in the ETF with their respective positions in the fund’s basket:

Bargain Stocks of QQQ

Moderna Inc. (MRNA - Free Report): It is a clinical-stage pharmaceutical company, primarily focused on discovering and developing messenger RNA (mRNA)-based therapies. The stock has plunged about 34% in a month and accounts for 0.4% in the fund’s basket. It saw a solid earnings estimate revision of $8.86 over the past month for this year and has an expected earnings growth rate of more than 1000%. The stock currently has a Zacks Rank #2 and a VGM Score of B.

NVIDIA Corporation (NVDA - Free Report): It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU. The stock has plunged about 20% in the same time frame and takes the eight spot in the fund’s basket with 2.49% allocation. Nvidia saw a solid earnings estimate revision of $1.65 over the past 30 days for the fiscal year (ending Jan 2022) and has an expected earnings growth rate of 32.7%. It presently has a Zacks Rank #2 and a Growth Score of B.

Align Technology Inc. (ALGN - Free Report): This company manufactures and markets a system of clear aligner therapy, intra-oral scanners, and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics and dental records storage. This stock makes up for 0.3% share in the fund’s basket and has shed about 18% of its value in a month. The company witnessed a positive earnings estimate revision of 33 cents for this year and its earnings are estimated to grow 73.14%. The stock currently has a Zacks Rank #1.

Cadence Design Systems Inc. (CDNS - Free Report): This company offers products and tools that help customers design electronic products. It has seen a positive earnings estimate revision of 14 cents for this year over the past month and has an estimated earnings growth rate of 7.9%. The stock presently has a Zacks Rank #2 and a Momentum Score of A. Cadence Design has been down about 13% in a month and makes up for 0.3% in QQQ portfolio.

KLA Corporation (KLAC - Free Report): It is an original equipment manufacturer (OEM) of process diagnostics and control (PDC) equipment and yield management solutions required for the fabrication of semiconductor integrated circuits (ICs) or chips. The stock has seen a positive earnings estimate revision of 50 cents over the past 30 days for the fiscal year (ending June 2021) and has an expected earnings growth rate of 29.9%. KLA Corporation makes up for 0.4% allocation in QQQ and has lost about 9% in a month. The stock currently has a Zacks Rank #2 and a Momentum Score of B.