Stocks Funds Are Buying: Tesla Stock Is Among These Top Picks

IBD’s Stocks Funds Are Buying screen has dozens of names, including many market winners. Among the notable stocks funds are scooping up, the IBD Stock Screener shows Tesla (TSLA), Google parent Alphabet (GOOGL), Meta Platforms (META), Adobe (ADBE), Netflix (NFLX) and Apple (AAPL).

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Smaller stocks are on the screen as well, and some are forming bases.

TransDigm Group (TDG) is forming a tight pattern with resistance around 907. First-quarter sales rose 20% to $1.6 billion, while earnings per share of $5.98 showed a 55% increase from the prior year.

TDG stock has an Accumulation/Distribution Rating of B-. More funds have been buying shares of TDG over the past seven quarters, including the JPMorgan Large Cap Growth Fund (SEEGX) and the Fidelity Contrafund (FCNTX).

First Solar (FSLR) is forming a cup base with a buy point of 232, according to IBD MarketSmith. Shares have fallen to the 50-day moving average, where they found support in July.

Sales rose 31% to $810.7 million while earnings per share of $1.59 showed an impressive 206% increase from the prior year. FSLR’s Composite Rating of 80 is too weak for a leading stock, however. More than 60% of shares outstanding are held by institutional investors. First Solar makes photovoltaic solar modules that convert sunlight to electricity.

Oracle (ORCL) is testing its 50-day line as it works on a flat base with a buy point of 127.54. The software leader is another stock that funds are buying.

Shares gapped up June 12 after a strong fiscal fourth quarter that saw sales rise 17% to $13.8 billion. Earnings per share of $1.67 rose 8%. Mutual funds own 40% of shares outstanding.

Tesla Among Stocks Funds Are Buying

Tesla has also pulled back to its 50-day line, although its chart shows some signs of topping.

Mutual funds own 33% of total shares. Tesla delivered a strong second quarter, with sales growth of 47% and earnings growth of 20% vs. the prior year, largely due to record deliveries after massive cost cuts. Margins came in lower, and the stock fell after earnings but may find support at the 50-day line.

Google and Meta are other stocks worth a quick look on the Stocks Funds Are Buying screen.

GOOGL broke out of a cup with handle with a 127.10 entry after second-quarter earnings last week. Shares have pulled back but are still above the buy point. More mutual funds have been buying the stock for the past eight quarters, giving the stock an Accumulation/Distribution Rating of B. GOOGL ranks third in the internet content group, which ranks eighth among IBD’s 197 industry groups.

Meta stock, meanwhile, is extended from a three-weeks-tight pattern with a 298.12 buy point and from the 10-week line. The stock boasts a superb Accumulation/Distribution Rating of A+.

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