What have the best mutual funds been buying recently? Top money managers have invested heavily in several large-cap stocks, such as Alibaba (BABA), Mastercard (MA), Microsoft (MSFT), Splunk (SPLK), Facebook (FB), CVS Health (CVS) and Costco (COST).
Over the last three months, the best mutual funds have also picked up shares in several of the best IPO stocks to watch. InMode (INMD), Palomar (PLMR), and StoneCo (STNE) fit that bill.
Many of these stocks are in or near a new buy zone, including Alibaba, Facebook, Splunk, StoneCo and Costco.
Note: Be sure to check these Excel files to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.
The Best Mutual Funds Invest Over $1 Billion In Alibaba Stock
Chinese e-commerce giant Alibaba leads the pack of new buys by the best mutual funds, garnering over $1.3 billion in investments. The stock has also seen eight quarters of rising fund ownership and sports a 1.5 up/down volume ratio. In further evidence of strong institutional demand, 294 funds with an A+ rating from IBD have reported a position in the stock.
Other leading stocks receiving large investments include JPMorgan (JPM) (approximately $969.7 million), CVS Health ($969.2 million), Microsoft ($933.1 million), and Facebook ($868.8 million) and Bank of America (BAC) ($793.8 million).
Which Stocks Are On The IBD Breakout Stocks Index Right Now?
Stocks To Watch: New Buys Near A Buy Point
As the stock market continues to flirt with another round of all-time highs on the major indexes, many leading stocks being picked up by the best mutual funds are testing or entering new buy zones. Here’s a quick review of some of the best stocks to watch.
- Alibaba Stock: After a nice breakout in good volume in late November, the IBD 50 stock pulled back to its 10-day line before finding support and rebounding again past its 195.82 buy point.
- Mastercard Stock: The Visa (V) rival is trying to charge ahead from a later-stage flat base showing a 293.79 entry. Mastercard sports a remarkable 125.1% return on equity and a 55.7% pretax profit margin.
- Splunk Stock: Since clearing a new buy point in February, the Big Data stock and IBD Big Cap 20 member has shown seesaw action and is once again peeking its head through a 142.80 entry. The buy range extends to 150.99.
- Microsoft Stock: With a strong presence in cloud computing, video games and software in general, Microsoft is trading at the upper edge of its 141.78 to 148.87 buy zone. Its relative strength line is just below new-high ground.
- StoneCo Stock: Partially owned by Warren Buffett-led Berkshire Hathaway (BRKB), this Brazilian payment processor and IBD 50 stock has been trying to definitively move past a 39.55 buy point in a cup with handle.
- InMode Stock: This August IPO stock has already earned a spot on both the IBD 50 and Sector Leaders. The Israeli company sells radio frequency devices used in women’s health. After an impressive run, InMode pulled back, but is trying to rebound.
- Palomar Stock: This IPO Leaders member has been on a tear since going public in April and is now extended beyond its first base. The provider of specialty insurance products posted 233% earnings growth in its latest quarterly report.
New Sells By The Best Mutual Funds
JPMorgan led the crop of stocks being sold by the best funds, with 39 net sellers (73 selling minus 34 buying). BofA was next with 30 net sellers (64 selling vs. 34 buying), followed by Norfolk Southern (NSC) with 27 (43 selling minus 16 buying).
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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