Let's look at three top stocks that funds are now buying. These are some of the best names to watch this week, including two rising stars in the energy sector.
Pop culture consumer products provider Funko has been a top name recently. The company is the leader of IBD's Leisure Toys group, which ranks 47th out of 197 industries. Shares are forming a cup-with-handle with a 26.03 buy point.
Funds have been accumulating this stock, and with good reason. The producer of many action toys, including highly-popular Marvel and Pokémon characters, is up over 21% this year. This compares favorably with the S&P 500's 17% loss during the same period.
Solid earnings growth is this stock's headline. The company posted an annual profit of $1.42 per share in 2021. That number is expected to grow an impressive 34% to $1.90 this year, and 13% to $2.14 in 2023.
Funko shares shot up over 26% after trouncing first quarter analyst estimates and raising guidance in May.
Investors will be keen to see whether strong results continued in the second quarter. Funko reports on Aug. 4, with estimates for a profit of $0.23 per share on sales of $292.6 million. The market is currently pricing in a volatile 11% move for the event, warning investors to be cautious if establishing a position into the release.
Top Stocks Benefiting From Soaring Gas Prices
Russia is threatening to cut gas supplies to Europe as soon as this week, stoking renewed interest in energy stocks. Natural gas prices have soared in reaction to the news and pipeline gas transporter Flex LNG (FLNG) has benefited.
Profits skyrocketed in 2021 to $3.04 per share, well above the $0.15 per share reported in 2020. They should level off in 2022 and 2023, with EPS projected at $2.94 and $3.14, respectively.
Flex LNG is ranked second in IBD's oil and gas pipeline group, which ranks a lofty 10th out of 197 industries. Shares are trading with a top Relative Strength Rating of 99 as the stock forms a cup base with a 33.46 buy point.
Canada-based Vermilion Energy will report second-quarter earnings on Aug. 11. Quarterly EPS is estimated at $1.67 per share on sales of $678 million. As energy prices have moderated, shares of Vermillion Energy have also consolidated, forming a cup base with a 25.51 buy point.
