The Best Mutual Funds Bet Big On AAPL Stocks — And These Other Names

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Still the clutches of this year’s bear market, tech stocks Alphabet (GOOGL), Microsoft (MSFT) and Nvidia (NVDA) again failed to regain a place on the latest list of new purchases by the best mutual funds. But Apple (AAPL) made a triumphant return after a two-month absence. It topped the list, raising more than $1.7 billion from leading money managers.




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But stocks from the medical sector once again largely dominated on this monthly updated stock screen. Including three medical software companies, 40 stocks from the medical sector are making an appearance.

Pfizer (PFE) ($1.4 billion) and Eli Lilly (LLY) ($1.3 billion) joins AAPL shares in the multi-billion dollar club. UnitedHealth (UNH) ($952 million), AbbVie (ABBV) ($818 million) and Elevation Health (ELV) ($810 million) kind of fall under that elite status.

Among energy stocks, Exxon Mobil (XOM) ($1.6 billion) leads. Semiconductor Equipment Manufacturer KLA (KLAC) also earns a seat at the table, raising an estimated $1.2 billion from top mutual funds.

NVDA, MSFT and GOOGL again failed to make the cut. But the presence of Apple and KLA points to a backlog of technology stock recovery. Plus, Nvidia, Microsoft, and Alphabet have all recaptured some key moving averages.

New investments by the best mutual funds in equities such as Analog Devices (ADI), OP Semiconductor (AT), Synopsys (SNPS), CDW (CDW) and Cadence Design Systems (CDNS) further point to a resurgent technology sector.

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Note: Be sure to check these Excel files, which are updated and published every month, to see all the stocks on the latest list of new purchases and a list of new sales by the best mutual funds.


Build custom stock screens to find stocks that match your own criteria


The Best Mutual Funds for Building Stocks

Risk management is the key to long-term success in the stock market. And risk management, especially in volatile times, means staying focused on the core concepts of investing in stocks.

First, stay in sync with market trends, as most individual stocks follow the direction of the major market indices. Second, understand the story behind the stock. Look for companies with innovative products that deliver strong profit and revenue growth. Finally, use the relative strength line, moving averages, and the price and volume action in the stock chart to gauge demand. The biggest money is made – with the lowest risk – when all these elements align and a stock forms a chart pattern and breaks out.

Now apply this approach to stocks on the list of new purchases by the best mutual funds.

AAPL stocks, for example, have bounced off the bear market low and recaptured the 40-week moving average. While the 10-week line remains below the 40-week benchmark, the 10-week line begins to move higher. As a sign of market leadership, Apple’s relative line of strength has already reached a new 52-week high as the recovery continues.

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With oil and gas stocks leading the market this year, XOM stocks hit another high in June before pulling back. The energy giant is now building new consolidation, but has slipped in heavy volume below the 50-day mark despite strong earnings growth on July 29.

Chevron (CVX) is showing somewhat similar action and has also generated explosive earnings per share in recent quarters. CVX stocks also failed to find support on the 50-day line. The latest move in CVX and XOM is reflected in the recent weakness in the Energy Select Sectors SPDR (XLE) ETF.

More stocks to watch in or near buy zones

Volatility, inflation and geopolitical uncertainty remain. But the strength returning to AAPL and other tech stocks — plus an expansion of names on the latest list of new buys by top mutual funds — bodes well for the market.

KLAC shares have hit a buy point of 372.44 in a double bottom, a common chart pattern in volatile environments. ON Semiconductor is also etching a double bottom breakout.

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With House Speaker Nancy Pelosi’s visit to Taiwan and other news hot spots around the world, leading defense stocks are also trying to secure new outbreaks. TransDigm (TDG) has a buy point of 633.44, also of a double bottom, in its sights. heico (HEI) flew into a buying zone. In the meantime, L3Harris Technologies (LHX) and Lockheed Martin (LMT) have reclaimed their 50-day lines.

Retail stocks in or near new buy zones include: Costco (COST), money tree (DLTR) and Dollar General (DG).

In the medical field, UnitedHealth, Vertex Pharmaceuticals (VRTX) and Eli Lilly are among the many stocks testing new breakouts and buying zones.

This is just a small sampling of all the names on this month’s list of new purchases from the best mutual funds. Many are setting up as a new uptrend is emerging.

Be sure to check out the Excel list in this article to see the stock ratings and stock charts for each company you’re interested in.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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