Four Magnificent Seven Stocks Funds Are Now Buying In Droves

The so-called Magnificent Seven stocks have led the 2023 rally. Apple (AAPL) has gained 46% year to date while Microsoft (MSFT) boasts an even higher 59% gain. Tesla (TSLA) has doubled in value, and Meta (META) has risen a staggering 180%.

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But that does not mean that investors who didn’t buy earlier are doomed to the sidelines. All four titans are in buy zones above clear bases, according to IBD MarketSmith chart pattern recognition tool. Further, the IBD Screener shows that these are stocks fund managers are buying. IBD’s CAN SLIM stock picking methodology shows that institutional support is a big factor in winning stocks.

Apple is approaching a buy point and all-time high of 198.23. Shares have been in consolidation since July and that shows strength as the stock rebounds from a 19-week correction. Declining sales have haunted the stock over the past four quarters, but earnings started picking up in the two most recent quarters.

Funds have been adding the iPhone maker to their portfolio in greater numbers in the past seven quarters. The Accumulation/Distribution Rating of B- also shows buying by institutions. The Allspring Growth Fund (SGRAX) holds 8.57% of its portfolio in Apple stock. Apple ranks second in the telecom and consumer products group.

Magnificent Seven Stocks TSLA And MSFT

Microsoft has rallied to its all-time high. But shares are still in buy range from a cup base’s entry of 366.78. The software behemoth also boasts institutional support and sports a B+ A/D Rating. More funds have been net byers over the past seven months. The MFS Growth Fund (MFEGX) has 14.85% of its portfolio in MSFT stock. Microsoft has a perfect Composite Rating of 99 and ranks first in the desktop software industry group.

Tesla also offers an early buying opportunity as it retakes the 50-day moving average with gusto. Heavy volume is lifting the stock closer to its buy point of 278.98 in a double-bottom base.

Details have been fuzzy regarding the Cybertruck as Thursday’s delivery date nears. CEO Elon Musk is also said to have cautioned customers against high expectations for a ramp-up in production. The stock shows a great improvement in its technical ratings. The Relative Strength Rating has jumped from 14 a year ago to 86 today.

It may seem that Meta’s massive ride has put the stock out of reach. But shares have been consolidating since July and remain in the buy zone from an entry at 326.20. The Composite Rating is an ideal 99.

Meta also has the best Relative Strength Rating (98) of the four Magnificent Seven stocks. More funds have been picking the stock over the past three quarters. Fidelity Contrafund (FCNTX) holds 11.86% of shares outstanding.

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