Knowing which stock to pick is not easy. While there are many metrics that investors can check, no one can know which will move a stock next. But checking what institutional investors are doing improves the odds of making the right choice, especially when Netflix stock and others are trading near buy points.
The IBD Stock Screener for stocks that funds are buying shows four stocks near buy points.
Netflix is in a buy zone from a three-weeks-tight entry of 664.25. It is still in the buy zone from a 639 cup base. But this was a late-stage base. Netflix stock holds an ideal Composite Rating of 99.
In Q1, sales accelerated for the third straight quarter while earnings grew 83% from the prior year. For the second quarter, Netflix expects 16% revenue growth, in line with analysts' estimates.
Mutual funds own 50% of shares outstanding. Netflix stock has also been under accumulation in recent weeks and holds an Accumulation/Distribution Rating of B. The number of funds owning Netflix climbed from 3,661 in September to 3,813 in December and 3,933 in March.
Broadcom has broken out past a 1,438.17 entry, according to IBD MarketSurge's chart analysis tools. Shares are also above a 1,445.40 alternate entry. The Composite Rating of 98 is nearly ideal as the company prepares to announce April-quarter results Wednesday after the close.
Sales growth ramped up in the January-ended quarter: Sales rose 34% to $12 billion. Earnings of $10.99 per share were 6% higher than the prior year — a rate in line with the previous two quarters. However, analysts polled by FactSet expect earnings to decline 18% in the current quarter.
Mutual funds own 50% of outstanding shares. It is a holding in more than 5,000 fund portfolios, a number that increased from 4,273 in the June 2023 quarter, according to IBD MarketSurge.
Beyond Netflix Stock: Funds Love Coinbase, Goldman
Coinbase is forming a late-stage cup base with a buy point of 283.48. Yet, sales growth accelerated over the past three quarters. The company went from losses to profits the past two quarters. Funds own 36% of shares outstanding. Its Accumulation/Distribution Rating is B+.
Goldman Sachs formed a three-weeks-tight pattern with a 471.48 buy point. Both sales and earnings growth decelerated in the first quarter, but analysts expect earnings to rise 178% in the current quarter. For the full year, earnings are seen rising 59%. Mutual funds own 38% of shares. The stock also holds an Accumulation/Distribution Rating of B+.
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