The continued boom in artificial intelligence has again landed Nvidia, Microsoft and Meta Platforms on the latest list of new buys by the best mutual funds. But rock-solid demand for companies across the building sector has also earned a spot on this monthly stock screen for Granite Construction.
With shares of GVA stock now teasing the very top of its buy zone, Granite Construction also joins Nvidia on the IBD Breakout Stocks Index.
While managers of the best mutual funds scooped up shares of Nvidia, Microsoft, Meta Platforms and other AI stocks, these top institutional investors also bet heavily on the broad building sector.
Including Granite Construction, 34 building stocks made this month's list of new buys by top funds — the largest grouping within this list of 200 companies.
See Who Joins Granite Construction, Nvidia On The IBD Breakout Stocks Index
Granite Construction Joins Nvidia, Meta In Top 1%
Calling itself "America's Infrastructure Company," Granite is one of the largest diversified construction and construction materials companies in the U.S. The Watsonville, Calif.-based firm is also a full-suite provider in the transportation, water infrastructure and mineral exploration markets.
Alongside both Nvidia and Meta, Granite Construction sports the highest-possible 99 Composite Rating. That score shows all three companies are outpacing 99% of all stocks in terms of the most important stock-picking factors.
Wall Street expects Granite Construction to post 39% earnings growth to $4.39 a share this year, which would mark a second-straight quarter of accelerating growth.
After a string of quarterly slowdowns in 2022, the company has posted three quarters of rising revenue. In Q4, Granite Construction posted $933.7 million in sales, marking an 18% year-over-year gain.
GVA Stock Continues To Build On Breakout Move
After forming a double bottom base in 2023, Granite Construction formed an early stage cup pattern in the first quarter of this year.
GVA stock cleared the new 52.24 buy point in the first week of March. Building on that breakout, Granite Construction has now climbed toward the top of this new buy zone, which extends up to 5% above the initial entry. On Wednesday, the stock closed within buy range, 4% above the initial entry.
Meanwhile, shares of Nvidia stock have pulled off the all-time high they briefly hit on March 8. The AI leader remains just shy of the 900 mark. Meta continues to flirt with the 500 level after finding support at its 21-day exponential moving average.
Joining its fellow Magnificent Seven stocks, Microsoft has also continued to build on its most recent breakout, finding support at the 21-day and 50-day lines.
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.
