When buying stocks, it is nice to know if they are in demand. Some chart metrics and stock screens give that information. Investors' Business Daily's Stock Screener tracks stocks that funds are buying — which is one important way of tracking demand. Amazon stock, Eli Lilly and Taiwan Semiconductor are among the standouts for top mutual funds.
Funds tend to buy stocks in large blocks, and the sheer volume of their trading can lift a stock, helping regular investors participate in the gain. Some of these are forming bases and are near buy points. Funds are snapping up shares of Eli Lilly, Taiwan Semiconductor and Amazon.
Eli Lilly is approaching its record high of 966.10 as it appears to build a base. It would be a riskier late-stage base, however. Still, the company leads the diversified medical industry group.
The stock rallied after second-quarter results showed that sales and earnings beat estimates. The company also raised its full-year sales outlook by $3 billion to $46 billion at the midpoint. Eli Lilly's up/down volume ratio of 1.2 also shows that buyers have been lifting the stock. Eli Lilly makes drugs for diabetes and obesity management.
Chip stocks went out of favor as investors rotated to more defensive plays amid fears of a recession in late July and early August. But Taiwan Semiconductor is a stock that funds did not stop buying. Shares sold off even after a strong quarterly performance in July, but buyers came in after the stock hit the 200-day moving average and bounced back.
The maker of advanced wafers for smartphones and AI applications beat views and raised its current-quarter and full-year outlook. Share have retaken the 50-day moving average as well and are working on a base with a possible buy point at 193.47.
The up/down volume ratio of 1.1 also shows that the leader in the semiconductor manufacturing industry group is in demand. Taiwan Semi is also in the IBD Tech Leaders list.
Funds Load Up On Amazon Stock After Sell-Off
Amazon stock shows a properly formed base with a buy point of 201.20, according to IBD MarketSurge. Shares have recovered from an earnings sell-off Aug. 2. Last week, the stock climbed back above its 200-day moving average.
Amazon reported a mixed quarter with earnings that came in above views while revenue and outlook disappointed. But the stock benefits from rising profit estimates for 2024 and 2025, with analysts expecting earnings of $4.73 a share in 2024 and $5.87 the following year.
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