Artificial intelligence powerhouses like Nvidia, Microsoft and Alphabet are clearly in fashion on Wall Street. But savvy fund managers have also shown a keen eye for iconic brands like Ralph Lauren, Abercrombine & Fitch, Urban Outfitters and Calvin Klein and Tommy Hilfiger parent PVH.
Nvidia stock led this month's list of new buys by the best mutual funds while Microsoft and Google stock were conspicuously absent.
But Ralph Lauren stock and PVH, which hail from the Apparel-Clothing Manufacturing industry group, secured a spot on this screen. Fashion retailers Abercrombie & Fitch, featured in this column on May 8, and Urban Outfitters also made the cut.
Also, Ralph Lauren, Abercrombie & Fitch and Alphabet fashioned a spot on the IBD Breakout Stocks Index, which gets updated weekly.
Nvidia and Abercrombie stock continue build on their own spectacular runs. On Wednesday, Nvidia stock jumped to yet another record high. At the same time, Ralph Lauren has entered the spotlight as it teases a breakout from a second-stage cup with handle.
Ralph Lauren stock already shot back above its 50-day moving average following a 90% spike in earnings on May 23. On Wednesday, the stock popped back above the 187.56 buy point it initially cleared on Monday, but retreated to close just below it.
Yet in a sign of rising technical strength, the 21-day exponential moving average crossed back above the longer-term 50-day line in late May.
See Who Joins Ralph Lauren On The IBD Breakout Stocks Index
Ralph Lauren: Wrinkled Chart But Impressive Gains
Based in New York, Ralph Lauren is global leader in the design, marketing and distribution of luxury lifestyle products. Flagship brands include Polo, Chaps and Lauren.
In last month's quarterly report, the company posted $1.71 per share in earnings. Sales growth rose 2% to $1.58 billion.
Having weathered a topsy-turvy climb off its 2020 lows, Ralph Lauren stock currently trades right around its all-time high. The choppy relative strength line reflects the turbulent action in the stock.
On Monday, Ralph Lauren stock poked its head above a 187.56 buy point in rising and above-average volume. On Tuesday, the stock eased back below that entry in light trade. RL stock rose in the final hour of trading to close down but near the top of Tuesday's price range.
Building on that momentum, Ralph Lauren climbed back into buy range early Wednesday before closing below the entry while holding a small gain.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
