Nvidia (NVDA) and Apple (AAPL) are known as the Magnificent Seven. Yet once again, none of the Magnificent Seven stocks, including Nvidia, Apple, Microsoft (MSFT) and Tesla (TSLA), were on the Best Mutual Funds’ latest list of new purchases. Netflix (NFLX), which was left out of the Magnificent Seven when Wall Street shifted its attention away from the once-popular FAANG stocks, got its revenge this month. Ignoring Nvidia, Apple and other impressive megacaps, top funds made their biggest bets on Netflix stock.
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Netflix Stock Leads Best Mutual Fund New Buys
While Nvidia is trading below its 50-day moving average, Netflix is comfortably above that benchmark. The video streamer has also just found support at its rising 21-day exponential moving average and is on the brink of a breakout to all-time highs.
Netflix topped the list of new purchases by blue-chip mutual funds this month, bringing in a staggering $682 million, followed by pharmaceutical company Eli Lilly (LLY) with inflows of $667 million.
Though not as glamorous as Nvidia or Apple, insurer W.R. Berkeley (WRB) ($598 million), waste-collection company Republic Services (RSG) ($491 million), and managed-care provider UnitedHealth (UNH) ($416 million) all made big money.
These savvy investors also added $345 million worth of Costco Wholesale (COST) stock to their shopping carts. On August 29, Costco stock made headlines after far outpacing the year-to-date gains of fellow Magnificent Seven members Amazon.com (AMZN) and Tesla (TSLA).
Company Symbol Investment ($ million) Fee Rating EPS Rating SMR Rating Netflix (NFLX) 682 98 98 $ A Eli Lilly (LLY) 667 99 93 A WR Berkley (WRB) 598 98 99 A Republic Services (RSG) 491 96 92 A UnitedHealth (UNH) 416 90 88 A Costco Wholesale (COST) 345 92 89 B
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, Apple pull out, but Palantir stock recovers
In the latest report, defense, intelligence, and artificial intelligence leader Palantir Technologies (PLTR) continued to be a favorite among the best mutual funds, raking in just under $11 million.
In fact, Palantir stock has appeared on this screen every month this year except for June.
There is demand from the insurance industry too
Led by W.R. Berkeley, the best mutual funds showed strong demand for companies in the insurance industry, with a total of 19 insurance companies making the list this month.
After W.R. Berkeley, other insurers that received the largest inflows included Hanover (THG), Progressive (PGR), Chubb (CB), and AFLAC (AFLAC).
Follow Matthew Galgani on X (formerly Twitter) @IBD_MGalgani.
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