One easy way to find best-in-class growth stocks is to use the IBD Stock Screener. Wednesday's "Stocks Funds are Buying" screen finds stocks meeting stringent IBD criteria with mutual funds adding shares.
Of the 26 stocks selected in today's screen, we highlight seven, with a select few in buy zones.
Four of the Magnificent Seven made it to the list: Meta Platforms, Tesla, Google parent Alphabet and Amazon.
Others with constructive charts include Regeneron Pharmaceuticals, Intuit and Adobe.
Stock Screener Highlights Four Big Tech Names
Alphabet stock is in the 5% buy zone of a cup-with-handle base reaching to 133.46, after hitting the 127.10 buy point. The stock broke out following Alphabet's second-quarter better-than-expected earnings and revenue report on July 25. Shares hit a 52-week high on July 28, but have pulled back and have wavered in the buy range, and finding support at the 21-day exponential moving average.
Mutual funds own 41% of the search engine stock, with 6,641 funds owning shares in June, up from 6,628 in March and 6,558 in December.
Facebook parent Meta Platforms stock jumped following the company's second-quarter earnings report on July 26. Shares of the Leaderboard Leaders stock hit a 52-week high and held the elevated level for several days before a quick decent.
The social media stock fell below its 21-day line and is finding support at its 10-week moving average. Mutual funds own 46% of the stock, with 4,825 funds owning shares as of March, up from 4,770 in December.
Tesla Stock Still On Funds' Radars
The stock screener identified these stocks with overall increasing fund ownership or IBD Mutual Fund Index funds adding shares:
Tesla shares have struggled since its Q2 release on July 19. Shares gapped down 9.7% and fell below the 21-day line.
The stock continues to feel pressure as the company rolled out several price cuts on its vehicles, including a second price drop on its China cars this week. Shares are trading below the 10-week line, albeit in light volume, signaling a warning to investors.
Mutual funds own 33% of the EV maker stock, with 3,959 funds owning shares in June, up from 3,941 in March and 3,913 in December. Management owns a high 21% of shares, showing conviction in their company.
Amazon shares jumped 8.3% on Aug. 4, to hit a 52-week high, following the company's higher-than-expected second-quarter EPS and sales numbers. The stock is fading in lower-than-average daily volume and finding support at its 21-day line.
Mutual funds own 38% of the online retail stock. IBD Mutual Fund Index fund Janus Henderson Forty Fund (JARTX) beefed up its position to 9.98 million shares in June. In addition, management owns 12% of shares, incentivizing its leaders in the company's success.
Stock Screener Finds Stocks In Buy Zones
The stock screener highlighted these stocks that broke out or hit new highs:
Regeneron Pharmaceuticals stock is in the buy zone of a double-bottom base reaching to 833.70, with a 794.00 buy point. Shares have been on the rise since the biopharmaceutical company reported Q2 earnings and sales that exceeded analysts' projections on Aug. 3.
Mutual funds own a high 64% of the biopharmaceutical stock, with IBD Mutual Fund Index fund Fidelity Contrafund (FCNTX) and JPMorgan Large-Cap Growth Fund (OLGAX) adding shares in June.
Intuit shares are in the buy zone of a long consolidation after hitting the 490.83 entry. Shares broke out after several analysts raised their price targets on the stock, and hit a 52-week high on July 28. Shares are trading tightly in the buy area.
Mutual funds own 51% of the financial and tax software stock, with 3,730 funds owning shares in June, up from 3,707 in March and 3,673 in December.
Adobe stock is retreating from its recent 52-week high of 552.94 reached on Aug. 1. The digital media and marketing software stock is trading around its 21-day line and finding support a its 10-week line.
Mutual funds own 48% of the stock, with 5,216 funds owning shares in June, up from 5,074 in March and 4,906 in December.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
