The buzz around artificial intelligence keeps tech titans like Nvidia, Apple and Microsoft in the headlines. But Nvidia stock, Apple and all the other Magnificent Seven names remain AWOL from this month's list of new buys by the best mutual funds. Instead, these savvy investors poured money into the ho-hum insurance sector, taking a particularly large stake in W.R. Berkley. WRB stock also just secured a spot on the IBD Breakout Stocks Index.
With capital inflows of $682 million, video streamer Netflix led the overall list of new buys by top funds. But W.R. Berkley spearheaded clear demand for stocks in the insurance sector, raking in an impressive $598 million.
Including W.R. Berkley, 19 insurance-sector stocks made this month's list of new buys by top funds.
After WRB stock, insurers with the largest capital inflows included Hanover ($155 million), Progressive ($114 million) and Chubb ($88 million).
Mercury, Arthur Gallagher and Aflac also represented the insurance industry names in favor with top institutional investors.
Fellow insurer Arch Capital Group also made the list and joined W.R. Berkley on the IBD Breakout Stocks Index.
See All Names On The IBD Breakout Stocks Index
WRB Stock In Demand — And In Buy Range
Apple stock looks to refurbish its current base after the king of Cupertino just unveiled the iPhone 16 but delayed the release of certain Apple Intellience features. And Nvidia rose for second day Tuesday but remains 9% below its 50-day line.
Meanwhile, the far less flashy W.R. Berkley ended the day in buy range. The stock cleared a 58.09 buy point in a saucer-with-handle pattern last month. The stock pulled back in light volume Tuesday, but held support at its 21-day exponential moving average.
One factor driving the stock's performance is strong earnings growth. On July 22, W.R. Berkley generated 37% earnings growth to $1.04 per share. That marked a fourth straight quarter of double-digit gains. Revenue for the quarter came in at over $3.3 billion, an 11% gain over the prior-year quarter.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
