Conspicuously absent since December of 2023, Apple has earned a spot on this month's list of new buys by the best mutual funds. Apple stock is joined by Alphabet as leading fund managers shun the other Magnificent Seven stocks, including Nvidia, Tesla and Meta Platforms.
And riding the continued AI boom into the new year, Broadcom and Salesforce also make the list.
Apple Stock Fights With Bears
On Jan. 7, one analyst downgraded Apple stock, citing concerns over China and a U.S. government antitrust lawsuit against Google parent Alphabet. Lukewarm demand for the new AI-fueled iPhone 16 models also contributed to MoffettNathanson's shift to a sell rating on Apple. Also note that in the third quarter of 2024, Warren Buffett-run Berkshire Hathaway slashed its massive stake in Apple by 25%.
Yet, on Dec. 26 Apple notched a record high before pulling back. The king of Cupertino has since slipped below its 21-day exponential moving average. On Friday, the stock fell below its 50-day line as the tech-heavy Nasdaq did the same. Apple is now fighting to hold the 237.49 buy point in an early stage flat base that it cleared earlier.
But underlying demand for Apple remains. It sports a 1.6 up/down volume ratio and a B- Accumulation/Distribution Rating. Plus, an impressive 442 funds with an A+ rating from IBD have a position in Apple stock, which earns a 91 Composite Rating.
More New Buys By The Best Mutual Funds
As the market indexes come under pressure with a rise in bearish sentiment, Google stock and Broadcom stand tall near their all-time highs. Alphabet showed resilience Friday, coming off early lows to close right around its 21-day line. Broadcom showed similar action.
Other AI-fueled stocks on this screen of new buys by the best mutual funds showing market-leading strength include Docusign, A10 Networks and Arista Networks.
Shares of Salesforce, on the other hand, have fallen below the 50-day line. But the enterprise software firm remains in buy range from a November breakout.
The links below highlight just a portion of this month's new buys and sells by top funds.
*Data provided by Lipper. "Total mil $ Inv" amounts under $1 million displayed as 0.
Click here to see all the stocks on the list.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
