Top Funds Favor Personal Care, Discretionary Stocks

By
A A A

Stocks tumbled from their perch in mid-May and much of June as the market fell into a correction on June 12.

After seven straight months of gains, the Nasdaq and S&P 500 were off just 1.5% in June.

This year through June, they're up 12.7% and 12.6%, respectively.

Managers of leading funds the past three months continued to ease into discretionary stocks, includingKrispy Kreme Doughnuts ( KKD ) and the restaurant firmChuy's Holdings ( CHUY ), in their latest reporting periods.

Personal care and vitamin supplement marketersUSANA Health Science ( USNA ) andNu Skin Enterprises ( NUS ) also garnered buying from top funds.

As the economy shows signs of recovery, leisure travel booking companies such asTripAdvisor ( TRIP ),HomeAway (AWAY) andPriceline.com (PCLN) could continue to benefit from Americans' love of traveling.

Top-performing funds have been investing in a handful of medical issues:Illumina (ILMN),Questcor Pharmaceuticals (QCOR),Actavis (ACT) andCigna (CI).

IBD spotted 12 best-performing funds that added Nu Skin, investing an estimated $3.2 million as of their latest reporting periods. The $46.1 billion Fidelity Growth Company Fund owned a big stake in the firm.

The Provo, Utah-based company markets a suite of anti-aging and nutritional products called ageLOC.

It sells products in 53 markets worldwide through direct sales, with about 800,000 distributors.

It plans to launch the ageLOC TR90, a weight management and body-shaping system, in the second half of the year.

The company believes this new product will be a big driver of growth.

Nu Skin glowed with solid double-digit earnings growth the past four quarters.

It recently raised full-year 2013 guidance to a range of $4.18 to $4.30 per share.

The stock consolidated for 59 weeks. It's trading near its buy point of 63.45.

Sell Side

The country's top funds took profits in big aerospace defense firmsBoeing (BA) andRockwell Collins (COL) in their latest reporting periods.

Boeing's sales growth slipped to 3% in Q1, the first single-digit showing since Q3 2011.



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



This article appears in: Investing , Mutual Funds

Referenced Stocks: CHUY , KKD , NUS , TRIP , USNA

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos

Stocks

Referenced

Most Active by Volume

86,627,350
  • $61.80 ▼ 3.33%
58,636,005
  • $15.44 ▼ 1.03%
43,254,709
  • $64.8725 ▼ 0.15%
39,355,269
  • $3.38 ▲ 0.90%
39,064,711
  • $4.29 ▲ 1.42%
38,037,134
  • $95.035 ▼ 0.37%
36,100,193
  • $94.66 ▼ 0.32%
32,857,379
  • $26.20 ▼ 0.46%
As of 7/10/2014, 04:04 PM