Recent market turmoil has shaken up the Magnificent Seven stocks that once dominated the top spots among big money managers: Microsoft (MSFT) and Nvidia (NVDA). A new stock, Go Daddy (GDDY), has risen to the top of the latest list of new buys from top mutual funds.
Both Nvidia and Microsoft topped the monthly screen rankings at different times this year, with Microsoft taking the top spot in July, overtaking Nvidia, who had been in the lead since June.
GoDaddy, a seller of Internet domains and related services to millions of small businesses, topped the list in August. Top mutual fund managers bought up more than $2 billion in GDDY stock. Fueled by such demand, GoDaddy soared to record highs.
Also making the list were GE Aerospace (GE) and cryptocurrency giant Coinbase Global (COIN), both of which were featured in an IBD stock analysis on Aug. 2. These savvy fund managers put $445 million into GE stock and $326 million into COIN stock.
Palantir Technologies (PLTR), a software, defense, and artificial intelligence company, also joined the trend with $248 million in inflows. Palantir shares have been on top funds’ lists of new purchases every month this year except June.
Nvidia, Microsoft and the other “Magnificent Seven” stocks did not appear on this month’s list.
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Watch these top stocks as traders wait for confirmation of trend change: Monthly Market Report
GoDaddy, Palantir lead new acquisitions by best mutual funds
A total of 12 companies raised at least $200 million each from top-tier funds, including GoDaddy, GE Aerospace, Coinbase and Palantir.
The stock screen showcases a wide range of sectors, from industry peers GE Aerospace and Howmet Aerospace (HWM) to hotel giant Hilton (HLT) and medical stocks Innutuitive Surgical (ISRG) and Vertex Pharmaceuticals (VRTX).
Homebuilder DR Horton (DHI) and building solutions provider Carlyle (CSL) also made the list, along with metal products maker Valmont Industries (VMI) and Texas Pacific Land (TPL), which sells, leases and manages land in the U.S., further illustrating the range of industries in demand.
Company Symbol Investment ($ million) Reward Rating GoDaddy GDDY $2,020 83 Howmet Aerospace HWM 678 99 Hilton HLT 582 67 Intuitive Surgical ISRG 564 93 DR Horton DHI 545 91 GE Aerospace GE 445 98 Coinbase Global COIN 326 96 Vertex Pharmaceuticals VRTX 301 93 Palantir Technologies PLTR 248 98 Valmont Industries VMI 239 86 Carlisle CSL 229 91 Texas Pacific Land TPL 207 98
The links below highlight just a few of this month’s new purchases and sales by top funds.
Click here to see all stocks on the list.
Nvidia, Mag7 shares fall as construction sector expands
The construction sector has maintained a strong presence on blue-chip mutual funds’ monthly new buy lists so far this year, and 28 construction stocks made the list in the August report as Nvidia, Microsoft and other AI giants dropped off the screen after revealing widening cracks.
DR Horton is just one of 10 homebuilders featured alongside PulteGroup (PHM), Toll Brothers (TOL) and Lennar (LEN).
Across the construction industry, companies like heating and air conditioning company Lennox (LII), construction materials supplier Topbuild (BLD) and cement manufacturer Eagle Materials (EXP) are seeing solid demand fundamentals.
Follow Matthew Galgani on X (formerly Twitter) @IBD_MGalgani.
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