Funds are staying mostly on the sidelines as markets navigate the treacherous sell-off driven by President Donald Trump's tariffs. But they are finding two companies attractive, according to Investor's Business Daily's stock screener for those issues funds are buying: Netflix and Philip Morris. Whether these are seen as safe havens to park money or a regular bet on growth remains to be seen.
Netflix is rebounding from its 200-day moving average. The streaming video giant has outperformed 92% of other stocks in the IBD database over the last 52 weeks. The content streaming giant also holds an ideal score of 99 on both its Composite Rating and Earnings Per Share Rating. Earnings growth accelerated 102% in the fourth quarter to $4.27 per share on sales of $10.2 billion.
Netflix stock ranks first in the leisure-movies and related group, according to IBD Stock Checkup. The group holds 9th place among the 197 industry groups tracked by IBD.
Netflix Stock: Earnings Loom
First-quarter results are due April 17. Analysts polled by FactSet estimate sales growth of 12% to $10.5 billion with an 8% growth in earnings of $5.69 per share.
More funds have been net buyers of the stock over the past seven quarters. Mutual funds own 51% of outstanding shares. Further, the American Century Focused Dynamic Growth Fund (ACFSX) and the Fidelity Contrafund (FCNTX) hold shares of Netflix stock. Both funds are part of the IBD mutual fund index.
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Funds also are buying Philip Morris. Shares have pulled back to the 50-day moving average after breaking out of an early-stage flat base at 134.15 and hitting an all-time high of 163.08. The tobacco stock holds a Relative Strength Rating of 97 while the Composite Rating sits at 92. Its EPS Rating of 82 also meets the minimum required level of 80.
Mutual funds own 53% of outstanding shares. In the IBD mutual fund index, the MFS Growth Fund (MFEGX) holds shares of Philip Morris.
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