Goodbye Apple (AAPL). Hi Eli Lilli (LLY), Apex Pharma (VRTX) and Albemarle (ALB). With AAPL stock removed from the latest list of best mutual fund new buys, top money managers are making big bets, with a focus on the medical, energy and retail sectors.
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Eyeing a wide range of industries as market indexes start a new uptrend, the top mutual funds have invested at least $1 billion in each of the 24 stocks.
Regeneron Pharma (REGN), note (MRK), McKesson (MCK) and managed care providers person (HUM) and Zigna (CI) join Lilly and Vertex in the multi-billion dollar medical industry club.
Drugmaker Lilly topped that stock list, raising an estimated $44.8 billion. While Vertex ranks among the top five biotechs, it’s a distant second among medical stocks at around $12.4 billion.
Among oil and gas stocks and other energy stocks, the best-performing funds also invested heavily Enphase Energy (ENPH) and Warren Buffett’s favorite Western Petroleum (OXY)
The top mutual funds also opened their wallets to buy retail stocks O’Reilly Automotive (ORLY), BJ’s Wholesale Club (BJ), Ultimate beauty (ULTA) and Academy Sport & Outdoor (ASO).
Top money managers have invested around $19 billion in ALB stock. Meanwhile peer colleagues from the chemical industry CSW Industrials (CSWI) also took a spot on this list of New Buys Best Mutual Funds.
Note: Be sure to check these excel files updated and published every month to see all the stocks on the latest list of top mutual funds new purchases.
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The best mutual funds take Vertex, Lilly and more towards buy points
As indices struggle to firmly establish and build upon a market bottom, a wide range of stocks on this list of new buys by top mutual funds are in or near new buy zones. But some of these entries are tested.
ALB stock, a lithium game just featured in The New America, continues to try to hold on to a recent enphbuy zone. Meanwhile, stocks from Vertex, Lilly, ORLY and many more are trying to create new buy points in a still challenging market.
As you review the stock charts of the top-rated companies among the best mutual funds, keep an eye on the relative strength line and key moving averages.
VRTX stock is approaching a buy point of 306.05 in an early stage flat basis. Note that the RS line has already reached a new high. Lilly’s line of relative strength is close to reaching this level as the drugmaker braces for a possible breakout above an entry of 335.43. A rising line of relative strength means the stock is outperforming the S&P 500.
Track support and resistance at key moving averages
It is also crucial to see if stocks are finding support or resistance around moving averages such as the 50-day and 10-week moving averages. At the same time, it is also important to check the volume in these benchmarks. ENPH stock just provided a good example.
IBD Big Cap 20 stock plunged below its 50-day moving average earlier this week in a large scale. As a result of this move, Enphase dropped IBD Sector Leaders. At the same time, look at the stock chart to see how the relative strength line has plummeted.
The recent drop doesn’t necessarily mean that the run on this highly profitable and fast-growing solar stock is over. But investors will want to see the RS line trending up and ENPH stock rally back above the 50-day and 10-week MA to prove the sun is still shining brightly on it.
Also check out ASO, BJ, ULTA and others testing their 10-week line. After falling below its 10-week mark, Ulta Beauty is now attempting to hold on to its second line of defense, the 40-week line.
AAPL stock was not among the top money managers’ new buys this month. But the iPhone maker shows the importance of tracking support and resistance at its moving averages. As tech stocks have struggled this year, Apple has also had a hard time staying on that trajectory. AAPL stock is currently trading below both its 10-week and 40-week moving averages.
As you go through this screen of new buys of the best mutual funds, you should also look at all of the IBD stock lists to enhance and expand your stock selection and stock research. Click here each day to see what stocks just came on or off these lists.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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