Top Funds' New Buys Include Some Leading Stocks


Several recent top buys of top-performing funds appeared to remain market favorites in May with their uptrends mostly intact, if on shaky ground amid a wavering market.

IBD Leaderboard stocks found on the list includedLumber Liquidators ( LL ),Ocwen Financial ( OCN ) andCelgene ( CELG ).

IBD 50 stocks were no strangers to the fund new buys list, either. Those that weren't also on the Leaderboard includedGreen Mountain Coffee Roasters ( GMCR ),FleetCor Technologies ( FLT ),Lithia Motors (LAD) andTripAdvisors (TRIP) .

IBD found 42 top-notch funds buying Lumber Liquidators. They've invested an estimated $60.4 million in the operator of 288 flooring stores.

The stock's 13% retreat below its recent all-time high has been contained above its 50-day moving average. That's where it's found support twice before since clearing a consolidation in February.

The pullback has taken it 6% below the 83.22 buy point of a short-stroke pattern, which it cleared in early May.

Analysts see earnings rising 40% in Q2. That's a marked slowdown from recent quarters, but still above the 25% you'd like to see.

Analysts see 2013 earnings climbing 44% to $2.42 a share and next year's up another 19%.

The company boasts a 99 Composite Rating, the highest possible and higher than all other members of its industry group, which ranks 44th out of the 197 that IBD tracks. Other high-ranking companies in the group includeHome Depot (HD) andW.W. Grainger (GWW).

Points to watch include how Lumber Liquidators' stock holds up as the market works through its current phase, uptrend under pressure. The stock's Accumulation-Distribution Rating has slipped in recent weeks, even as volume has lightened up on the pullback.

Sell Side

None of the stocks making the Top Funds Latest Sells list looked to be under serious distribution.

None had Acc-Dis Ratings below C-. Their Up-Down Volume ratios were all above one and showed no drastic deterioration in recent weeks.

Of those most off their recent highs,Owens Corning (OC), down 6%, is still above its 10-week moving average and 3% below its recent consolidation's buy point of 43.98.

Walt Disney (DIS), 5% off its high, has found support at its 10-week moving average.

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: CELG , FLT , GMCR , LL , OCN

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