Magnificent Seven stocks Microsoft and Nvidia have fallen off their perches at the pinnacle of demand among leading money managers. A new name — GoDaddy — has stepped up to take their place at the top of the latest list of new buys by the best mutual funds.
Both Nvidia and Microsoft have led this monthly screen on and off at different times this year. Microsoft led in July, snatching the crown from Nvidia, which ruled in June.
GoDaddy, a seller of internet domains and provider of related services to millions of small businesses, registered its name at the top the list in August. Managers of the best mutual funds scooped up over $2 billion worth of GDDY stock. That demand has propelled GoDaddy to record highs.
GoDaddy continues to soar as its relative strength line spikes to a 52-week highs. Wednesday marked a seventh straight up day.
GE Aerospace, which was featured in the IBD Stock Analysis on Aug. 2, and cryptocurrency powerhouse Coinbase Global also made the list. These savvy fund managers poured $445 million into GE stock and $326 million into COIN stock.
Software, defense and artificial intelligence firm Palantir Technologies joined the party with a capital inflow of $248 million. Palantir stock has made the list of new buys by top funds every month this year except June. After a sharp drop below its 50-day line earlier this month, shares of PLTR have blasted back into and beyond buy range. Now sporting the highest-possible 99 Composite Rating, the stock tradesphm right around its all-time high.
Neither Nvidia, Microsoft nor any other Magnificent Seven stocks even made an appearance on this month's list. With the exception of Meta Platforms and Apple, all of the Mag 7 names remain mired below their 10-week moving averages. After nibbling at it for a couple of days, Apple stock retook that benchmark on Friday.
But as the Nasdaq rebounds and IBD's recommended market exposure level gets raised, Nvidia stands poised to reclaim its 50-day line. On Tuesday, the AI powerhouse moved back above its 21-day exponential moving average. Nvidia maintains its spot on IBD Leaderboard.
GoDaddy, Palantir Lead New Buys By The Best Mutual Funds
Including GoDaddy, GE Aerospace, Coinbase and Palantir, a total of 12 companies took in at least $200 million each from the top-performing funds.
From industry peers GE Aerospace and Howmet Aerospace to hotel giant Hilton and medical stocks Inutuitive Surgical and Vertex Pharmaceuticals, this stock screen showcases a wide range of sectors.
Homebuilder D.R. Horton and building solutions provider Carlisle also make the cut. Valmont Industries, a maker of metal products, and Texas Pacific Land which sells, leases and manages land in the U.S., further showcase the scope of industries in demand.
| Company | Symbol | $ Amt Invested (mil) | Comp Rating | |
|---|---|---|---|---|
| GoDaddy | $2,020 | 86 | ||
| Howmet Aerospace | 678 | 99 | ||
| Hilton | 582 | 66 | ||
| Intuitive Surgical | 564 | 92 | ||
| D.R. Horton | 545 | 90 | ||
| GE Aerospace | 445 | 98 | ||
| Coinbase Global | 326 | 96 | ||
| Vertex Pharmaceuticals | 301 | 92 | ||
| Palantir Technologies | 248 | 99 | ||
| Valmont Industries | 239 | 84 | ||
| Carlisle | 229 | 90 | ||
| Texas Pacific Land | 207 | 97 |
The links below highlight just a portion of this month's new buys and sells by top funds.
Click here to see all the stocks on the list.
Building Sector Expands As Nvidia, Mag 7 Stocks Go AWOL
For much of this year, the building sector has maintained a strong presence on each monthly list of new buys by the best mutual funds. And as Nvidia, Microsoft and other AI powerhouses reveal widening cracks and vanish from this screen, 28 building stocks have erected a spot on the August report.
D.R. Horton is just one 10 homebuilders featured alongside PulteGroup, Toll Brothers and Lennar.
Across the broader building sector, A/C & Heating firm Lennox and construction products supplier TopBuild join cement producer Eagle Materials and others have laid down a solid foundation of demand.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
