Medidata, CaesarStone Among New Buys Of Top Funds


With the stock market rally getting long in the tooth, not many top mutual fund managers' recent buys are near buy points that would interest CAN SLIM investors.

Since the S&P 500's last 10% dip, to a low in June 2012, the index has climbed 42%.

Many leading stocks that have been favorites of the top-performing funds in the past three months have broken out of basing patterns at least twice as they've worked their ways to new highs.

Two that are near buy points:Medidata Solutions ( MDSO ) andCaesarStone Sdot-Yam ( CSTE ).

Managers of top-performing funds the past three months have been loading up on Medidata in their latest reporting periods. Thirty-three leading funds added the stock, investing an estimated $64 million.

The New York-based firm provides cloud-based clinical development software for academic institutions, contract research organizations, drug and biotech companies.

Medidata's products help these companies analyze data to better administer and structure clinical trials. Their customers include big household drug firms such as Amgen, Pfizer and Roche.

As revenue and client base ramp up, the company recently raised its long-term revenue growth target to 20%-25%.

The stock has been a steady performer, rising 200% thus far this year. It's currently in the later stage of its ascent and may be more prone to failure. There are always exceptions to the rule. Medidata is trading at about 121, near its buy point of 127.88.

Leading funds have also taken an interest in CaesarStone, the maker of high-quality quartz surface material, most often used in kitchens and bathroom countertops.

Much like Medidata, the company is growing revenue at a steady clip, helped by a rebounding housing market.

It's planning on growing revenue and distribution in North America by building a new manufacturing facility in the U.S. in 2014, with the ability to expand current production by 50%.

The stock was also up more than 200% this year and trading near an early-stage base buy point of 48.79.

Sell Side

Among top funds' latest sells wasGilead Sciences ( GILD ). The stock is holding near its all-time high, having run up after breaking out from a late-stage cup base in September.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Mutual Funds

Referenced Stocks: CSTE , GILD , MDSO

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos



Most Active by Volume

  • $10.26 ▼ 6.81%
  • $15.58 ▼ 1.08%
  • $7.13 ▲ 51.06%
  • $112.12 ▲ 2.39%
  • $13.49 ▲ 0.22%
  • $27.86 ▲ 2.50%
  • $5.67 ▼ 0.18%
  • $28.07 ▲ 0.14%
As of 10/9/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by