The IBD Screen of the Day is a handy screen for picking winning stocks. The Stocks Funds Are Buying screen has big money on its radar and watches stocks that fund managers are increasing their holdings in.
According to the CAN SLIM stock picking strategy, institutional money — the I in the acronym — shows the level of interest in a stock.
Finance giant and Dow Jones component JPMorgan Chase, retailer Tractor Supply and Ameriprise Financial are the only stocks appearing in this screen. And all three are acting well.
JPMorgan broke out of a flat base with a 138.76 entry in January. However, shares on Tuesday tested the 50-day moving average as financials sold off.
Still, more funds bought the stock in the December quarter compared with the quarter ended in September. Fund managers own 37% of the stock, according to MarketSmith.
JPM had a strong fourth quarter, with sales of $47.4 billion, an increase of 55% from the previous year, while earnings per share also rose 24% to $3.56 per share. JPM is first in the money-center banking group, which ranks No. 76 from the top of IBD's 197 industry groups.
Tractor Supply, Ameriprise Hold Up
Tractor Supply is also back to its buy point after a breakout from a double-bottom base with a 227.84 entry. Sales grew 21% to $4 billion, while its $2.43 earnings per share grew 26% in the fourth quarter.
The stock is third in the retail and wholesale building products group, which ranks No. 80. Mutual funds own 47% of the stock, and more fund managers bought the stock in the last quarter compared to the preceding one.
Tractor Supply sells health and maintenance products for livestock, pets and small animals. The Brentwood, Tenn.-based company also makes towing and tool products, seasonal products, such as heating products, lawn and garden items and power equipment.
Ameriprise Financial ranks No. 3 in the investment banks and brokers group, which ranks No. 33. Fourth-quarter sales declined 4% to $3.6 billion from a year ago, although earnings per share of $6.94 grew 13%.
The stock is still near the 339.51 buy point of a flat base. Mutual funds own 47% of the stock and in fact, more funds have been buying the stock for the past six quarters.
The Minneapolis, Minn.-based company offers financial services to individuals and fund managers, including brokerage accounts, insurance and annuities.
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