Broadcom stock and DoorDash made the Stocks That Mutual Funds Are Buying screen from Investor's Business Daily. The IBD MarketSurge Growth 250 names formed three-weeks-tight patterns and are near highs.
The screen of the day data shows that DoorDash holds an IBD Accumulation/Distribution Rating of B+, while Broadcom stock sits with a B score. A rating of "B" indicates moderate institutional buying over the last 13 weeks, and the added plus sign means even greater accumulation. DoorDash stock boasts a pristine 99 Composite Rating, and Broadcom holds a 98.
DoorDash Stock In A Buy Zone
The IBD Leaderboard name gained 4.3% on Monday. DoorDash formed a three-weeks-tight pattern with a 223.81 entry, according to MarketSurge pattern recognition. The restaurant food delivery stock is in the buy zone up to 235. These pattern entries are best used to add to a current position.
Investors could have bought DoorDash stock from its prior stage-one double-bottom base with a 201.03 buy point.
Shares revisited a level not seen since November 2021, and have climbed around 37% this year. Its relative strength line has been on a steady climb since its July low.
Mutual funds have added DoorDash shares for eight straight quarters. As of March, 2,338 funds owned the stock, up from 2,009 in December and 1,797 in September. And its 1.8 up/down volume ratio shows positive demand over the last 50 days.
Its bottom line has greatly improved, with the company showing a profit of 29 cents per share in 2024, after six straight years of losses. Analysts expect explosive growth to $2.18 earnings per share in 2025, followed by $3.63 a share in 2026.
Analysts' sales forecasts show an average of 19% expansion over the next four quarters.
DoorDash ranks No. 1 out of 57 stocks in the Retail-Internet group, which holds the 8th spot out of the 197 industry groups that Investor's Business Daily tracks.
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Broadcom Stock Near Its Record High
Newly added IBD SwingTrader position Broadcom is back in the buy range up to 264.47 of a consolidation pattern with a 251.88 buy point. Broadcom stock has been riding its 21-day exponential moving average since late April.
Shares have wavered around the entry since breaking out of the base June 3. The stock hit a record high of 265.43 June 4, the day before the company reported fiscal second-quarter results.
Its profit grew 44% on a 20% sales increase. Wall Street sees its fiscal 2025 earnings rising 36%, followed by 24% in fiscal 2026.
Mutual funds have also loaded up on Broadcom stock for the last eight quarters. As of March, 6,583 held shares, up from 6,198 in December and 5,805 in September.
Six funds on the IBD Mutual Fund Index hold Broadcom stock. As of March, JPMorgan Large Cap Growth Fund owned a whopping 11.74 million shares, while Fidelity Contrafund held 7.02 million shares. In addition, it has a 1.6 up/down volume ratio.
Broadcom holds a 99 Earnings Per Share Rating. The company has been a steady profit grower as seen in its Earnings Stability factor of 5 out of 99 possible – with a lower number being better.
It ranks No. 1 out of 39 stocks in the Electronics-Semiconductor Fabless group, which holds the 80th spot out of the 197 industry groups that Investor's Business Daily tracks.
Broadcom designs and makes fabless chips – specializing in artificial intelligence semiconductors – and infrastructure software. It serves data centers, broadband providers, and financial institutions and provides enterprise security solutions.
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