Stocks To Watch: Best Mutual Funds Buying These Potential Breakout Stocks

What sticks out when you review the latest list of new buys by the best mutual funds? Potential breakout stocks. UnitedHealth (UNH), Best Buy (BBY), Charles Schwab (SCHW) and others are stocks to watch as they may be setting up for new breakout moves when a stronger market rally returns.


During a market pullback like we’ve seen recently, leading stocks will often consolidate prior gains and form new chart patterns, such as a flat base or cup with handle.

Other stocks, like alcohol distributor Constellation Brands (STZ) or Famous Footwear owner Calares (CAL), will try to break out but hit resistance.

Bottom line: The time to build your list of stocks to watch is when the market is under selling pressure or in a correction. The list below includes several potential breakout stocks that could be poised to pop when a stronger uptrend resumes.

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Potential Breakout Stocks

Heavy buying by the top fund managers has already helped drive breakouts for stocks like E-Trade Financial (ETFC), Insperity (NSP), Integra Lifesciences (IART) and USANA Health Science (USNA). On Thursday, Abiomed (ABMD) joined that list by bolting higher on earnings and is now out of buy range.

But the list of new buys (see link below) also includes several stocks still in or near a potential buy zone.

Electronics retail giant Best Buy is working on a second-stage consolidation. The conventional buy point is 78.69, but it’s also showing a more aggressive 77.42 entry.

UnitedHealth is building a first-stage flat base with a 250.89 entry, while Charles Schwab is trying to complete a later-stage pattern. Schwab was named one of IBD’s Best Online Brokers for 2018.

Constellation Brands, which distributes Corona beer and a range of other alcoholic beverages, has pulled back below the 231.93 buy point it initially cleared on April 17. See if the stock can find support at its 50-day line and retake the entry in strong volume.

Defense sector stock Flir Systems (FLIR) remains within a 51.80 to 54.39 buy zone after breaking out last month. The maker of thermal imaging and infrared camera systems posted a 33% spike in earnings growth in Q1.

Stocks Being Sold

Occidental Petroleum (OXY) topped the list of stocks being sold with 10 net sellers (13 selling minus three buying). Fellow energy sector stock Noble Energy (NBL) had seven net sellers (11 selling minus four buying).

HollyFrontier (HFC), NextEra Energy (NEE), Harsco (HSC) and Hess (HES) were also among stocks with the most net sellers.


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