Stocks tend to make big moves when mutual funds add them to their portfolios. When these stocks are also near buy points and buy zones, those bullish setups could lead to even more gains.
The IBD Stock Screener shows five stocks where mutual funds are loading up. An added bonus is that they are also near buy zones as funds scoop up shares.
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Artificial intelligence leaders Meta Platforms, Apple and Taiwan Semiconductor have rallied for much of 2024.
Taiwan Semi stock has gained as much as 93% while Apple has more or less kept pace with the S&P 500 and has gained 27%. Meta holds a 75% gain.
Taiwan Semi's near-doubling this year comes after shares corrected 16% from their all-time high of 212.60. The stock then formed a cup-with-handle base with a lower buy point of 205.63.
Funds Adding To Taiwan Semi
Funds have been adding Taiwan Semi stock in recent weeks. That could also help the stock make a big move after a breakout.
If the stock clears the buy point in volume that is at least 40% higher than average, it could go on to make new highs — especially when considering its strong technical ratings.
The Relative Strength Rating, which compares the stock with thousands of others in the Investor's Business Daily database, is a relatively strong 90 out of a best possible score of 99 for Taiwan Semi. The overall rating, or Composite Rating, is nearly ideal at 97; and the score for earnings growth in recent quarters is also an impressive 98.
Meta stock's 75% gain has landed it in a buy zone that goes up to 633.10. Meta stock holds a Composite Rating of 98 and EPS Rating of 96 while the Relative Strength Rating is 89. Funds have been buying the social media giant, giving it an Accumulation/Distribution Rating of B+.
Apple Stock Edges Out Of Buy Zone
Meanwhile, Apple is beginning to edge out of a buy zone from a 237.49 buy point. With a Composite Rating of 91 and EPS Rating of 90, this top Warren Buffett holding has been beating 82% of stocks in the Investor's Business Daily database. Apple holds an Accumulation/Distribution Rating of B-.
Spot Bases And Buy Points With Pattern Recognition
Other stocks being scooped up by funds include software stock Manhattan Associates, which is in a cup base with a buy point of 307.50. In the investment management group, Carlyle Group is in a buy zone from a cup base's buy point of 50.92. Both have an Accumulation/Distribution Rating of B+.
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