Institutional backing is an important element of a winning stock, as large purchases by big money managers can help boost stock prices. Investor's Business Daily's Stocks That Funds Are Buying screen identified 21 leading names, including Eli Lilly, GE Vernova and TKO Group Holdings.
Eli Lilly stock is hugging its 10-week moving average in a long base, while GE Vernova and TKO Group Holdings are building cup bases.
Eli Lilly Stock Tumbles After Earnings
The pharmaceutical stock is in a 36-week long consolidation pattern with a 972.53 buy point, according to MarketSurge pattern recognition. The entry point is also its all-time high reached on Aug. 22, but an early entry of a double-bottom base can be seen at 935.63.
Eli Lilly stock and its relative strength line have been erratic since around July.
Eli Lilly topped first-quarter earnings and sales estimates last Thursday. Its first-quarter revenue increased 45% to $12.73 billion, driven mainly by growth from its diabetes drug Mounjaro and its weight-loss drug Zepbound.
But the positive quarterly numbers were overshadowed by the drugmaker's lowered full-year 2025 profit guidance of $20.78 to $22.28 per share. Though, it held its 2025 sales outlook in the range of between $58 billion and $61 billion.
Eli Lilly stock plunged around 11.6% Thursday in heavy volume. The stock knifed below its 50-day and 200-day moving averages. Shares recouped a portion of the drop the following day but are finding resistance at their 50-day line.
Mutual funds have added Eli Lilly stock for eight straight quarters, with 5,799 owning shares in March, up from 5,771 in December.
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GE Vernova Builds A Base
GE Vernova stock is building the right side of an early-stage deep cup base with a 447.50 buy point. Its relative strength line has reached a 52-week high as shown by the blue dot on its weekly chart.
GE Vernova handily beat first-quarter profit and revenue forecasts April 23. Its sales growth ticked up to 11% following four straight quarters of single-digit increases. Its first-quarter earnings per share of 91 cents improved from a loss of 47 cents per share a year ago. It reported positive cash free cash flow of $975 million in the first quarter vs. negative $661 million cash flow a year ago.
"We generated positive free cash flow in the first quarter, a milestone for the GE Vernova businesses, reflecting strong down payments and working capital management resulting in further improvement in linearity," GE Vernova Chief Financial Officer Ken Parks said in the earnings report.
The power generation company reaffirmed its 2025 revenue guidance of $36 billion to $37 billion, with the midpoint below views.
Mutual funds have increased their holdings in GE Vernova stock over the last four quarters, with 2,398 owning shares in March, up from 2,291 in December and 1,992 in September.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks.
GE Vernova stock started trading a few days ahead of the April 2, 2024, spinoff from General Electric, which became GE Aerospace.
Its business segments consist of power, electrification and wind. But its biggest revenue generator is its power business, which consists of gas, hydro, nuclear and steam.
TKO Stock Climbs Back In A Base
TKO Group Holdings is climbing in an early-stage cup base with a 179.09 buy point. Its relative strength line is also at a 52-week high. TKO stock has gained around 17% so far this year and holds a 95 IBD Relative Strength Rating.
TKO is expected to report first-quarter results on Thursday. Analysts see first-quarter profit per share of 58 cents vs. a loss of $1.26-per-share a year ago. First-quarter revenue is projected to rise 14%.
The company's full-year 2025 profit is estimated to grow to $2.95 per share, from 2 cents per share in 2024. For 2026, forecasts call for $5.16 EPS.
Mutual funds rediscovered the sports and entertainment stock in March, with 728 owning TKO shares, up from 616 in December.
TKO owns mixed martial arts organization UFC, sports entertainment promoter WWE and bull riding organization, PBR.
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