The country's best-performing mutual funds ramped up their
appetite for apparel stocks ahead of the holidays.
Leading funds have been adding apparel makersChico's FAS (
) andMichael Kors (
They've also shopped specialty stores, such asGNC Holdings (
) andVitamin Shoppe (
), in their latest reporting periods.
As a result of seeing higher spending at the mall, fund
managers have been banking on credit card processorsVisa
(V),FleetCor Technologies (FLT) andPortfolio Recovery Associates
(PRAA) to do well.
IBD found 28 top-notch funds buying Michael Kors, investing an
estimated $194 million in their latest reporting periods.
The Hong Kong-based firm makes a luxury line of apparel,
shoes, accessories and handbags for men and women. It's marketed
under several labels by Michael Kors, its founder and
As of June, the company operated a total of 321 stores,
comprised of 253 of its own retail stores and 68 stores by
After breaking out of a shallow five-month base in August, the
stock has been trading in a flat base, near its 52-week high of
57.95. It's gained 107% so far this year and 180% from its debut
price of 20 last December.
The company has seen impressive triple-digit earnings growth
the past four quarters. Revenue growth has been rock steady in
the double digits for the same period. It's doing so well that it
recently raised guidance for its fiscal second quarter and
Top-performing funds also liked cable-satellite giantComcast
(CMCSA), investing an estimated $748 million in the latest
reporting period. Its group ranked No. 17 among 197 industry
groups as of Monday.
The provider of cable TV service and content is near a 52-week
high and boasts an IBD Composite Rating of 99, the highest
possible. Analysts see earnings growth slowing to 13% in Q4 and
14% in 2013.
The nation's top funds have been unloading medical stocks such
asMcKesson (MCK),UnitedHealth Group (UNH) andPfizer (PFE) in
their latest reporting period.
Gold and silver minersRandgold Resources (GOLD) andNewmont
Mining (NEM) were also sold by top funds. Gold prices have been
declining in recent weeks as the dollar rallied.