Best Mutual Funds New Buys List Led By Financials, Big Tech Stocks

As 2022 gets underway, which stocks are the best mutual funds betting on for the new year? Big tech stocks Advanced Micro Devices (AMD), Apple (AAPL), Nvidia (NVDA), Alphabet (GOOGL) and Microsoft (MSFT) continue lead. But financial stocks, including Charles Schwab (SCHW), Bank of America (BAC) and many regional banks, also bankrolled a spot on the latest report.

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Along with many other tech stocks on the list, Lam Research (LRCX) and 2021 IPO TaskUs (TASK) join AAPL, NVDA, AMD, MSFT and GOOGL stock.

On the financial front, the best mutual funds scooped up shares in Goldman Sachs (GS), Morgan Stanley (MS) and Blackstone (BX) to go along with investments in Charles Schwab and Bank of America. Meanwhile, the number of regional and superregional bank stocks on the list stands out, with 79 stocks in those categories featured.

Cadence Bank (CADE) leads this group. With over 400 branch locations across the South, Midwest and Texas, Cadence took in over $200 million from the best mutual funds. The stock broke out Jan. 4 and has continued to climb, bucking the pullback in the general market.

Signature Bank (SNBY), Fifth Third Bancorp (FITB) and Silvergate Capital (SI), which focuses on crypto and digital currency, also secured a spot.

Among the superregional banks, Silicon Valley-based SVB Financial (SIVB) also made the list, along with industry peer KeyCorp (KEY).

Note: Be sure to check these Excel files, updated and published each month, to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.

List Of New Buys By The Best Mutual Funds Shows Stock Market Breadth

The stocks featured in the latest list of new buys by top funds go well beyond financials and familiar big tech names like Apple, Nvidia, Alphabet and Microsoft.

Led by KBR (KBR) and D.R. Horton (DHI), 35 building sector stocks staked claims.

Including AMD, Nvidia, Qualcom (QCOM) and Broadcom (AVGO), 25 companies from the semiconductor sector etched a spot on the list.

Other Articles And Tables In This Special Report:

Further showing the wide range of investments by the best mutual funds, Crox (CROX), Home Depot (HD) and Pfizer (PFE) earned spots alongside Diamondback Energy (FANG), Costco (COST), Thermo Fisher Scientific (TMO) and McDonald’s (MCD).

Be sure to check this Excel file see all the stocks from all the sectors featured among the new buys by the best mutual funds.

Microsoft, Nvidia Among Stocks Flashing Bases And Breakdowns

After rising to start the new year on Jan. 4, the market has run into selling pressure. While the S&P tests support, the Nasdaq has dropped sharply below its 50-day moving average. Plus, with earnings season around the corner, investors have reason to be cautious.

To keep the odds of success in your favor, wait for a stock to form a chart pattern and break out before investing. Also pay attention to the relative strength line to gauge how your stock is performing compared to the S&P 500.

Microsoft, Nvidia and AMD are now below their 50-day lines, while Apple has also pulled back but remains above that benchmark.

Powertrain manufacturer Regal Rexnord (RRX) has slipped below a buy zone, while transportation play ArcBest (ARCB) has retreated after a recent breakout. Contract manufacturer Fabrinet (FN) looks to retake a prior buy point.

And that’s just the tip of the 2022 iceberg of stocks to watch. Review the list of new buys by top funds and use IBD’s stock lists and stock ratings to further refine your search, keeping an eye on the general market.

Editor’s Note: We recently launched the IBD Bases, Breakouts and Breakdowns newsletter. Sent daily (M-F), you’ll find timely mentions of notable stocks setting up or breaking down. The newsletter is automatically included with your IBD Digital subscription. 

How To Read Buys & Sells By The Best Mutual Funds

Ever wonder if managers of the best mutual funds know something you don’t? Would you like an early signal showing when institutional investors — especially the best ones — are getting in or out of certain stocks? New Buys Of Top-Performing Stock Funds and Top Funds’ Latest Sells provide just that. Use the PDF and Excel files to see when companies like Alphabet and Nvidia are in demand with large investors.

Updated each month, the New Buys list includes only new buys of the top 30% of stock funds ranked by 36-month performance. Companies are sorted by the highest combined Earnings Per Share (EPS) and Relative Price Strength (RS) Ratings. The number of top-performing funds that bought the stock in the latest reporting period is given.

As seen in the links above to the PDF and Excel files, the Total Mil$ Invested column shows the amount of money, in millions, the funds put into each stock. The column reflects both new positions and additions to existing ones. Prices, EPS and RS Ratings, and P/E are from the month-end close.

The Latest Sells list tallies the number of top-performing funds that were net sellers of each stock in the fund’s latest reporting period. Because some funds bought the same stocks sold by others, we also looked at the total number of buyers of each stock.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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