Nvidia and Apple bask in the glory of the Magnificent Seven moniker. But once again, not Nvidia, Apple, Microsoft, Tesla nor any of the Mag 7 stocks made the latest list of new buys by the best mutual funds. Now, after getting snubbed by not being included as a Mag 7 member when Wall Street shifted its attention away from the once-popular term FAANG stocks, Netflix got its revenge this month. Ignoring Nvidia, Apple and the other magnificent megacaps, top-performing funds placed their biggest bets on Netflix stock.
Netflix Stock Leads New Buys By The Best Mutual Funds
Although it rose over 3% Monday, Nvidia remains 10% below its 50-day line. Apple stock has also dropped below that benchmark ahead of its "biggest upgrade cycle." In fact, of all the Mag 7 stocks, only Meta Platforms trades above that key threshold. Meta stock managed to cling to that line to start the new week.
Meanwhile, Netflix remains above that line as the Nasdaq tries to find its footing after last week's sell-off.
The video streamer led this month's list of new buys by the best mutual funds, raking in an impressive $682 million. Drugmaker Eli Lilly was next, with inflows of $667 million.
Although decidedly less glamorous than Nvidia and Apple, insurance firm W.R. Berkley ($598 million), waste collection company Republic Services ($491 million) and managed care provider UnitedHealth ($416 million) all took in magnificent sums.
These savvy investors also added to their shopping carts $345 million worth of shares of Costco Wholesale. On Aug. 29, Costco stock was highlighted for dwarfing the year-to-date gains of Magnificent Seven members Amazon.com and Tesla.
| Company | Symbol | $ Amt Invested (mil) | Comp Rating | EPS Rating | SMR Rating |
|---|---|---|---|---|---|
| Netflix | $682 | 98 | 98 | A | |
| Eli Lilly | 667 | 99 | 93 | A | |
| W.R. Berkley | 598 | 98 | 99 | A | |
| Republic Services | 491 | 94 | 93 | A | |
| UnitedHealth | 416 | 91 | 88 | A | |
| Costco Wholesale | 345 | 92 | 90 | B |
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.
Nvidia, Apple AWOL, But Palantir Stock In Focus
Taking in just under $11 million in the latest report, defense, intelligence and artificial intelligence leader Palantir Technologies remains in favor among the best mutual funds.
In fact, Palantir stock has now made this screen every month this year, except June.
Handling Friday's sell-off better than most tech stocks, Palantir managed to eke out a small gain to end the week. On Monday, Palantir blasted out to a 14% gain on news that it will join the S&P 500 on Sept. 23.
Insurance Sector Also In Demand
Led by W.R. Berkley, the best mutual funds showed strong demand for companies in the insurance sector. A total of 19 insurers made this month's list.
After W.R. Berkley, insurers with the largest capital inflows included Hanover, Progressive, Chubb and AFLAC.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
