Nextracker stock and TE Connectivity are two unrelated names that mutual funds are loading up on. One hit a record high on Monday and is in a buy zone, while the other is nearing a buy point in a base.
Tuesday's IBD Screen Of The Day highlights these names from a short list of five on the Stocks That Funds Are Buying list. Both stocks are on the IBD MarketSurge Growth 250.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Nextracker Stock Sits In A Buy Zone
Solar stock Nextracker hit a record high in lighter-than-average volume on Monday, before reversing 0.5% lower. Shares are in the buy zone up to 71.26 from the 67.87 buy point of a consolidation pattern on a MarketSurge chart.
The stock has gained around 91% year to date and has outperformed 95% of stocks that Investor's Business Daily tracks.
Nextracker stock holds the top spot out of 26 names in the Energy-Solar group, which ranks 15th of the IBD industry groups.
The company reported better-than-expected fiscal first-quarter earnings and sales on July 29. It raised its fiscal 2026 per-share profit guidance to a range of $3.96 to $4.27. It previously expected $3.65 to $4.03 per share.
Nextracker also boosted its fiscal 2026 revenue guidance range to between $3.2 billion and $3.45 billion from $3.2 billion to $3.4 billion.
Its IBD Accumulation/Distribution Rating of B+ indicates fairly heavy institutional buying over the last 13 weeks.
Mutual funds own a hefty 74% of Nextracker shares and have added the solar stock for three straight quarters, according to IBD Stock Checkup. As of June, 959 funds owned the stock, up from 901 in March.
Nextracker holds a robust 98 Composite Rating and a 97 Earnings Per Share Rating.
Nextracker designs and makes solar tracking systems and software and provides services to solar power plants.
TE Connectivity Nears A Buy Point
TE Connectivity is in an early-stage flat base with a 212.76 buy point. Shares gapped up nearly 12% after the company handily beat fiscal third-quarter earnings and revenue forecasts on July 23.
Its third-quarter earnings growth accelerated to 19% from 6% three quarters ago. Sales growth ramped up to 14% from flat over the same time period.
TE Connectivity also raised its fiscal fourth-quarter profit and sales estimates, with both topping views.
Analysts project fiscal 2025 profit to climb 14%, followed by 10% expansion in fiscal 2026. This would follow an 8% drop in profit in fiscal 2023 and a rise of 12% in fiscal 2024.
Sales forecasts call for 12% growth in each of the next two quarters then slow to 5% over the following four quarters.
The electronics parts stock has ridden its 10-week moving average straight up since late April without any tests of the line.
As of June, 2,565 mutual funds owed shares. It has an Accumulation/Distribution Rating of B- and its 1.9 up/down volume ratio shows positive demand for the stock over the last 50 days.
TE Connectivity holds a 95 Composite Rating and 89 Earnings Per Share and Relative Strength Ratings.
TE Connectivity makes components ranging from fiber optics to antennas and switches to sensors for the electronics market. Its parts are used in the power management, automotive, automation, industrial and aerospace industries.
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