The country's best-performing funds the past three months have
been adding retail issues, such asKrispy Kreme Doughnuts (
),Chuy's Holdings (
),Domino's Pizza (
),Lumber Liquidators (
), andCabela's (
) in their latest reporting periods.
In this economy, Americans are still eating out, but choosing
the fast-casual dining route with lower price points. That's why
quick bite restaurants such as Domino's Pizza, Krispy Kreme
andFiesta Restaurant Group (FRGI) have been doing well.
Although Chuy's Tex-Mex themed restaurants offer full-service
dining, the average bill is still affordable for consumers.
Several IBD Leaderboard stocks were popular with top funds:
Lumber Liquidators,Celgene (CELG) andCommVault (CVLT). They all
remained within buy zones after clearing bases or add-on buy
IBD found 14 funds poured an estimated $172 million into
Celgene. The developer of treatments for breast cancer, arthritis
and other illnesses has been under solid accumulation since its
June 2012 bottom, though volume has softened recently as the
stock pushes to new highs.
Lumber Liquidators is hanging near its new high set last week
after the stock cleared a three-weeks-tight add-on pattern. It
remains in the buy zone.
CommVault has drifted back to the top of the flat base it
cleared on March 14 in below-average volume.
Another bright spot in the market is financials. Managers of
leading funds have continued to snatchOcwen Financials
(OCN),Financial Engines (FNGN),Portfolio Recovery Associates
(PRAA),Evercore Partners (EVR) andHFF (HFF).
Ocwen, which was featured in January's column before its
attempt to break out of its consolidation, has started work on a
new base. The mortgage servicer is trying to regain support its
10-week moving average. Its earnings are seen rising 254% this
year and 17% next year.
Top-rated funds have been taking profit of medical stocks,
includingAir Methods (AIRM),Pfizer (PFE) and Baxter International
(BAX), in their latest reporting periods.
After hitting a 52-week high of 51 on March 7, Air Methods has
pulled back in recent weeks. It's trading in a third-stage base.
Such late stage bases are more prone to failure.