As the 2020 stock market ended, the best mutual funds continued to invest in leading tech stocks like Apple (AAPL), Nvidia (NVDA), Applied Materials (AMAT), PayPal (PYPL), Lam Research (LRCX) and Taiwan Semiconductor (TSM).
Newer IPO stocks to watch, such as Datadog (DDOG), GrowGeneration (GRWG), Yeti (YETI), Floor & Decor (FND), StoneCo (STNE) and Academy Sports & Outdoor (ASO), also saw strong institutional sponsorship.
The pandemic-driven demand for online shopping has only increased interest by the best mutual funds in e-commerce and retail stocks, as well companies supporting payment, cybersecurity and infrastructure needs.
Retail stocks that made this latest list of new buys by top funds include Etsy (ETSY), JD.com (JD), RH (RH), Floor & Decor (FND) and Five Below (FIVE). Auto dealers Lithia Motors (LAD) and AutoNation (AN) also made the cut.
Palo Alto Networks (PANW), Nice (NICE) and SailPoint Technologies (SAIL) are in demand for their cybersecurity and data protection services.
Note: Be sure to check these Excel files to see all the stocks on the latest list of new buys and list of new sells by the best mutual funds.
IBD Breakout Stocks Index Gains 50.5% In 2020
Boosted by stocks like Pinduoduo (PDD), ServiceNow (NOW), Entegris (ENTG), PennyMac Financial Services (PFSI) and eXp World (EXPI), the IBD Breakout Stocks Index soared 50.5% in 2020. Track the index to see which stocks to watch may drive big gains in 2021.
The Best Mutual Funds Buy Into Leading IPO Stocks To Watch
It often takes a while for new companies, even big-buzz IPOs such as Facebook (FB) and Snap (SNAP), to find their footing. But stock market history shows that the best IPO stocks tend to make their biggest moves within the first few years of going public.
While only Yeti stock made this latest list of new buys by the best mutual funds and the IPO Leaders screen, top money managers have also been picking up shares in newer IPOs like GrowGeneration stock, Datadog, Floor & Decor and StoneCo stock.
Floor & Decor is also on the IBD 50 list of top growth stocks.
Stocks To Watch Flashing Bases And Breakouts
Among tech stocks to watch, there has been no shortage of companies making big moves recently. Just within the semiconductor sector, Lam Research, Applied Materials, Advanced Micro Devices (AMD), Teradyne (TER), TSM stock, Advanced Energy Industries (AEIS) are only a few making noteworthy runs.
Several leading stocks are forming or testing new buy points and chart patterns right now. Apple stock, Nvidia stock, Lithia Motors stock, JD.com stock and Medifast (MED) all fit that bill. Boston Beer Company (SAM), Datadog, Shopify, and Repligen (RGEN) are also in that category.
If you’re not sure how to read stock charts or identify the best stocks to buy and watch, use the new year as a way to develop new investing skills. Start with these how to invest guidelines for how to stay both profitable and protected.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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