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Investors Business Daily
Investors Business Daily
Business
VIDYA RAMAKRISHNAN

Funds Still Piling Into 2 Magnificent Seven Stocks, 2 Other Megacaps

One sure way of picking winning stocks is to look at what fund managers are buying. The IBD Stock Screener's list of Stocks Funds Are Buying includes two Magnificent Seven leaders as they trade near buy points.

Apple, the biggest stock by market cap and a Magnificent Seven standout, is in a buy zone from a cup with handle's buy point of 192.93. Mutual funds own 29% of the tech megacap. More funds have been net buyers of Apple stock over the past seven quarters, giving it an Accumulation/Distribution Rating of B+.

Analyst Dan Ives at Wedbush Securities sees AAPL reaching a $4 trillion market cap by the end of 2024. The analyst has an outperform rating and a price target of 250 on the stock. That is a 28% increase from the current price of around 196.

Funds are also buying Magnificent Seven stock Tesla, which is approaching a buy point of 278.98 in a double-bottom base. Shares rose on Tuesday as China vehicle insurance registrations spiked to 18,300 from the prior week's 15,400.

Ives has an outperform rating on TSLA stock with a price target of 310. That is a 21% upside from the current price of around 256. Tesla stock has an of Accumulation/Distribution Rating B+. More than 30% of shares outstanding are under institutional sponsorship, and more funds have bought TSLA over the past three quarters.

AVGO Climbs In Market Cap; Apple Stock Still No. 1

Broadcom and Dow Jones leader JPMorgan Chase are also getting big money's interest.

Mutual funds own 53% of shares outstanding of AVGO. The stock also has an impressive track record of increasing fund ownership over the past seven quarters and an Accumulation/Distribution Rating of A-.

On Monday, Broadcom surpassed Visa as the 10th-biggest U.S. stock by market cap. That is a massive move for the stock that ranked 26th at the beginning of the year, according to Dow Jones Market Data. V shares are extended and in a profit zone. Investors should wait for a pullback and a proper base.

JPM stock is at the top of a buy zone from a 159.38 buy point. Shares are on track for an eighth straight gain, thanks to a dovish outlook on interest rates headed into 2024. JPM holds 13th place in U.S. market cap with a capitalization of $478 billion. Mutual funds own 37% of JPM stock. More funds have been net buyers of the Dow Jones leader over the past six quarters, giving it an Accumulation/Distribution Rating of A-.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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