Microsoft (MSFT), Paccar (PCAR), Broadcom (AVGO) and Salesforce (CRM) top this month’s list of new buys by the best mutual funds. Including MSFT, AVGO and CRM, 10 stocks raked in $1.3 billion to more than $10 billion each from these leading money managers.
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Commercial truck giant Paccar — featured in the IBD Stock Analysis on April 28 — took in $9.3 billion, just under Microsoft’s haul of $10.2 billion.
As the table below shows, the best mutual funds also plowed money into Tractor Supply (TSCO), Workday (WDAY), Lam Research (LRCX), Fair Isaac (FICO) and HubSpot (HUBS), which was recently featured in the IBD New America.
With their track records of stable earnings growth, FICO and Microsoft stock both also earn a spot on the list of IBD Long-Term Leaders.
Click here to see the full list of new buys by top funds.
Microsoft Stock Leads Billion-Dollar Club
| Company | Symbol | $ Amt Invested (mil) | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Microsoft | (MSFT) | 10,238 | 97 | 90 | 92 | A | B+ |
| Paccar | (PCAR) | 9,295 | 94 | 90 | 87 | A | C+ |
| Tractor Supply | (TSCO) | 3,665 | 93 | 92 | 89 | A | B- |
| Broadcom | (AVGO) | 2,957 | 98 | 96 | 88 | A | B- |
| Salesforce | (CRM) | 1,739 | 98 | 96 | 89 | B | B- |
| Workday | (WDAY) | 1,706 | 98 | 94 | 82 | A | C+ |
| Lam Research | (LRCX) | 1,688 | 93 | 88 | 80 | A | B |
| Fair Isaac | (FICO) | 1,639 | 98 | 93 | 97 | A | C+ |
| NewMarket | (NEU) | 1,377 | 92 | 92 | 93 | B | B |
| HubSpot | (HUBS) | 1,279 | 99 | 99 | 95 | B | B |
The Best Mutual Funds Focus On These Sectors
While leading money managers scooped up shares of Broadcom, Lam Research and KLA (KLAC), they opened up their wallets to bet on stocks to watch in the broad software, medical and building sectors.
They also showed a craving for the retail sector, particularly restaurants. The best mutual funds ordered up shares of Chipotle Mexican Grill (CMG), Yum China (YUMC), Texas Roadhouse (TXRH), Wingstop (WING) and Potbelly[ticker symb=PBPB].
WING and CMG stock both just took flight on earnings, with their relative strength lines soaring. Potbelly and Texas Roadhouse both reported after the close Thursday, with PBPB rising while TXRH fell ahead of Friday’s open.
Microsoft Stock, Salesforce Lead Software Sector
The best mutual funds had a soft spot for software stocks across a broad range of industry groups. Microsoft, Salesforce, Workday, Fair Isaac and HubSpot made up half of the 10-member billion-dollar club.
Other notable names across the software sector include Oracle (ORCL), Palo Alto Networks (PANW), Synopsys (SNPS), Fortinet (FTNT) and Cadence Design Systems (CDNS).
With their impressive track records of stable earnings growth, MSFT, CDNS, FTNT and FICO stock also all earn a spot on the IBD Long-Term Leaders list.
The Best Mutual Funds Eye Homebuilders And Building Sector
An impressive 11 homebuilder stocks made this month’s list of new buys by the best mutual funds, led by NVR (NVR), PulteGroup (PHM) and Lennar (LEN).
Other homebuilders in demand include Taylor Morrison Homes (THMC), Meritage Homes (MTH), Tri Pointe Homes (TPH) and KB Homes (KBH).
Within the wider building sector, TopBuild (BLD), Builders FirstSource (BLDR), and Installed Building Products (IBP) also make the cut.
Building products retailer Floor & Decor (FND) has also found space on the showroom floor. But overnight, FND stock was down over 7% after reporting earnings after the close Thursday.
Vertex, SWAV Stock Lead Healthy Medical Checkups
Led by biotechs Vertex Pharmaceuticals (VRTX), Catalyst Pharmaceuticals (CPRX) and 2023 IPO Genelux (GNLX), the best mutual funds invested a healthy amount of money in the medical sector.
Shockwave Medical (SWAV) has set up a handle to establish a 300.10 buy point. The maker of medical devices to use sonic pressure waves to treat calcified cardiovascular disease reports earnings on May 8.
Meanwhile, VRTX stock continues to build on a recent breakout after finding support at its 21-day exponential moving average. Genelux soared from around $8 to nearly $40 in just three weeks as it blasted through an IPO base in February. GNLX stock has held the bulk of those gains and is now testing support at its 10-week line.
Top money managers also scooped up shares in InMode (INMD), Dexcom (DXCM), Novartis (NVR), Novo Nordisk (NVO) and many other medical names.
Click here to see a full list of new buys by the best mutual funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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