When you see the gains made by stocks like Alphabet (GOOGL), Nvidia (NVDA), Applied Materials (AMAT), Goldman Sachs (GS) and Charles Schwab (SCHW), it’s not hard to guess where the best mutual funds have been investing their money.
Since the stock market recovered from the coronavirus crash, these top-performing money managers have been buying into the semiconductor, financial and cloud computing sectors. They’ve also scooped up shares in several promising newer IPOs. From the medical sector, InMode (INMD), which went public in 2019, made the cut. And 2020 IPO Academy Sports & Outdoor (ASO) also did.
GOOGL Stock, Nvidia Lead Latest Bases, Breakouts & Buy Zones
With the Nasdaq charging to all-time highs, the best mutual funds are riding that wave with new investments in technology stocks.
GOOGL stock leads the way, taking in approximately $736 million in the latest report. Nvidia stock, which has soared since breaking out of a cup-shaped base in late May, took in an estimated $240 million.
While Nvidia stock is extended well beyond its 648.67 buy point, GOOGL stock is still within its buy zone. The search giant is approximately 3% above its initial buy point. The ideal buy zone extends up to 5% above the initial entry.
After breaking out in early May, GS stock has pulled back and is now testing support at its 10-week moving average. Fellow financial stock Moelis & Co. (MC) is retesting a buy point after clearing it in June. Moelis was featured in IBD on June 25 as it was setting up a second-stage flat base.
As you go through the list of new buys by leading money managers, focus on stocks showing the seven traits of winning stocks.
Growth stocks like GOOGL stock and Nvidia display these characteristics early in their runs. Using these seven traits as a blueprint will help you improve your stock picks and see how to stay both profitable and protected.
How To Read Buys & Sells By The Best Mutual Funds
Ever wonder if managers of the best mutual funds know something you don’t about your stock? Would you like an early signal showing when institutional investors — especially the best ones — are getting in or out of certain stocks? New Buys Of Top-Performing Stock Funds and Top Funds’ Latest Sells provide just that. Use the PDF and Excel files to see when companies like GOOGL stock and Nvidia that are in demand with large investors.
Updated and published each month, the New Buys list includes only new buys of the top 30% of stock funds ranked by 36-month performance. Companies are sorted by the highest combined Earnings Per Share (EPS) and Relative Price Strength (RS) Ratings. The number of top-performing funds that bought the stock in the latest reporting period is given.
As seen in the links above to the PDF and Excel files, the Total Mil$ Invested column shows the amount of money, in millions, the funds put into each stock. The column reflects both new positions and additions to existing ones. Prices, EPS and RS Ratings, and P/E are from the month-end close.
The Latest Sells list tallies the number of top-performing funds that were net sellers of each stock in the fund’s latest reporting period. Because some funds bought the same stocks sold by others, we also looked at the total number of buyers of each stock.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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