Monday's IBD Screen of the Day is Stocks That Funds Are Buying. Amazon.com, Walmart and Progressive were among 27 winning stocks that made the list, as all three are in or near buy zones and reaching new highs.
Having big money managers load up on a stock is a positive and can help boost stock prices through large purchases. All three of these leading stocks have shown institutional interest.
Amazon Stock In Buy Zone
Amazon stock is in a buy zone up to 211.26 of a choppy, irregular base with a 201.20 buy point. Shares of the Dow Jones component broke out Wednesday in heavy volume and climbed to a record high Thursday before easing.
The online retail giant topped third-quarter earnings and sales estimates when it reported results on Halloween.
Its Accumulation/Distribution Rating of A- from Investor's Business Daily indicates fairly heavy institutional buying over the last 13 weeks. Eight IBD Mutual Fund Index names own shares of the Magnificent Seven name, including Fidelity Contrafund and JPMorgan Large Cap Growth Fund.
Its 1.7 Up/Down Volume Ratio shows positive demand for the Amazon stock over the last 50 days.
Walmart Stock Back Near Highs
Fellow Dow Jones name, Walmart, is in a buy zone up to 85.84 of a three-weeks-tight pattern with an 83.34 entry. The stock reached a record high on Wednesday.
Walmart stock holds a B+ Accumulation/Distribution Rating and a 1.6 Up/Down Volume Ratio. Mutual funds have padded their positions of Walmart for three straight quarters, with 3,598 owning shares in September, up from 3,510 in June and 3,341 in March.
The big-box discount retailer has been on a steady incline since its fiscal second-quarter earnings report on Aug. 15. Shares have climbed around 60% so far this year, helping the blue chip stock earn an IBD Relative Strength Rating of 88.
Estimates show profit rising 4% in the company's fiscal third quarter, slowing from 22% and 10% in the prior two quarters. Its revenue is forecast to increase 4% over each of the next four quarters. The company reports its fiscal third-quarter earnings results around Nov. 19.
Walmart's fiscal 2025 and 2026 profit is projected to rise 11% each year. Walmart earns a score of 4 out of 99 in Earnings Stability from IBD, with a lower number better for this ranking.
Progressive Stock Hovers Around Buy Point
Progressive stock weakened from Monday's highs and is near a 260.46 buy point of a flat base, according to MarketSurge pattern recognition. The insurance stock reached an all-time high Monday morning before fading.
The stock reclaimed its 50-day moving average on Wednesday as part of a postelection market surge in heavier-than-average volume.
Mutual funds have increased their holdings of Progressive for four straight quarters according to IBD Leaderboard analysis. In September, 3,237 funds owned shares, up from 3,149 in June and 3,046 in March.
The vehicle and property insurance provider missed third-quarter adjusted earnings and revenue projections on Oct. 15. Devastating hurricanes Helene and Milton hit the insurance provider's bottom line.
"During September 2024, we incurred $563 million of catastrophe losses, or 9.0 loss ratio points, related to Hurricane Helene, primarily in the Southeastern United States," the Progressive earnings report stated.
As of Oct. 14, Progressive estimated that its vehicle businesses will incur losses of approximately $325 million, while its property business will incur net losses not to exceed $200 million from Hurricane Milton.
Insurance stocks have been one of the leading industry groups in 2024. Progressive is in the Insurance-Property/Casualty/Title group, which ranks No. 88 out of the 197 industry groups covered by IBD.
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