10 Stocks Top Fund Managers Are Betting On—Should You Follow?
Despite a Fairly Valued Market, Top Investors Are Still Finding Opportunities
The U.S. stock market appears to be fairly valued, making it challenging for investors to find bargains. However, some of the best fund managers have been selectively adding stocks to their portfolios.
By analyzing the latest holdings of top-performing actively managed funds, Morningstar identified 10 stocks that have been attracting the “smart money.”
How Were These Stocks Chosen?
Morningstar’s screening focused on:
✅ Actively managed funds in the U.S. large-value, large-blend, or large-growth categories.
✅ Funds with Morningstar Medalist Ratings of Gold, Silver, or Bronze (with full analyst coverage).
✅ Funds that hold 50 stocks or fewer, ensuring a concentrated investment strategy.
After comparing the latest portfolios of 30 qualifying funds to their previous holdings, the following 10 stocks stood out as recent buys.
The 10 Stocks the Best Fund Managers Are Buying
1. Apple (AAPL) – A Top Holding, but Overvalued?
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.23 (Overvalued)
• Sector: Technology
• Key Insight: Despite its wide economic moat, Apple’s stock appears overpriced, with concerns over slowing iPhone growth, especially in China.
2. AbbVie (ABBV) – Strong Drug Portfolio but Facing Competition
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.10 (Slightly Overvalued)
• Sector: Healthcare
• Key Insight: While AbbVie’s immunology drugs Skyrizi and Rinvoq show strong growth, its former blockbuster Humira is seeing declining sales due to biosimilar competition.
3. Procter & Gamble (PG) – Consumer Giant Facing Margin Pressure
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 1.19 (Overvalued)
• Sector: Consumer Defensive
• Key Insight: Despite steady revenue growth, rising costs and competitive pressures could impact future margins.
4. Comcast (CMCSA) – Undervalued Despite Broadband Challenges
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.74 (Undervalued)
• Sector: Communication Services
• Key Insight: Comcast is struggling with broadband subscriber losses, but its strong cash flow and wireless expansion plans may support long-term growth.
5. Airbnb (ABNB) – A Travel Recovery Play
• Number of top fund managers buying: 3
• Morningstar Price/Fair Value: 1.04 (Fairly Valued)
• Sector: Consumer Cyclical
• Key Insight: Despite strong post-pandemic travel demand, regulatory challenges and increasing competition remain risks.
6. Keurig Dr Pepper (KDP) – Steady Demand but Facing Competition
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.98 (Fairly Valued)
• Sector: Consumer Defensive
• Key Insight: The coffee and beverage giant has consistent demand, but it faces rising cost pressures and market competition.
7. IQVIA Holdings (IQV) – A Healthcare Data Powerhouse
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.12 (Slightly Overvalued)
• Sector: Healthcare
• Key Insight: A leading player in clinical research and health data analytics, IQVIA benefits from the rising demand for data-driven healthcare insights.
8. Equifax (EFX) – Credit Data Firm with Growth Potential
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.05 (Fairly Valued)
• Sector: Financial Services
• Key Insight: With strong demand for credit scoring and analytics, Equifax has growth potential, but faces concerns over rising regulatory scrutiny.
9. Arthur J. Gallagher (AJG) – A Resilient Insurance Play
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 1.08 (Slightly Overvalued)
• Sector: Financial Services
• Key Insight: One of the largest insurance brokers, AJG benefits from recurring revenues, but faces challenges from rising insurance costs.
10. Taiwan Semiconductor Manufacturing (TSM) – A Key Player in the AI Chip Boom
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.89 (Undervalued)
• Sector: Technology
• Key Insight: As the world’s largest semiconductor foundry, TSMC benefits from the growing demand for AI chips, but faces geopolitical risks.
Final Thoughts: Should You Invest in These Stocks?
While top fund managers are buying these stocks, it’s essential to analyze each stock’s valuation, growth potential, and risk factors before investing.
Undervalued Stocks to Watch: Comcast (CMCSA) and Taiwan Semiconductor (TSM)
High-Quality but Overvalued: Apple (AAPL), AbbVie (ABBV), and Procter & Gamble (PG)
Steady Performers with Moderate Risk: Equifax (EFX) and Arthur J. Gallagher (AJG)
Would you add any of these stocks to your portfolio? Let us know in the comments!
Despite a Fairly Valued Market, Top Investors Are Still Finding Opportunities
The U.S. stock market appears to be fairly valued, making it challenging for investors to find bargains. However, some of the best fund managers have been selectively adding stocks to their portfolios.
By analyzing the latest holdings of top-performing actively managed funds, Morningstar identified 10 stocks that have been attracting the “smart money.”
How Were These Stocks Chosen?
Morningstar’s screening focused on:
✅ Actively managed funds in the U.S. large-value, large-blend, or large-growth categories.
✅ Funds with Morningstar Medalist Ratings of Gold, Silver, or Bronze (with full analyst coverage).
✅ Funds that hold 50 stocks or fewer, ensuring a concentrated investment strategy.
After comparing the latest portfolios of 30 qualifying funds to their previous holdings, the following 10 stocks stood out as recent buys.
The 10 Stocks the Best Fund Managers Are Buying
1. Apple (AAPL) – A Top Holding, but Overvalued?
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.23 (Overvalued)
• Sector: Technology
• Key Insight: Despite its wide economic moat, Apple’s stock appears overpriced, with concerns over slowing iPhone growth, especially in China.
2. AbbVie (ABBV) – Strong Drug Portfolio but Facing Competition
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.10 (Slightly Overvalued)
• Sector: Healthcare
• Key Insight: While AbbVie’s immunology drugs Skyrizi and Rinvoq show strong growth, its former blockbuster Humira is seeing declining sales due to biosimilar competition.
3. Procter & Gamble (PG) – Consumer Giant Facing Margin Pressure
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 1.19 (Overvalued)
• Sector: Consumer Defensive
• Key Insight: Despite steady revenue growth, rising costs and competitive pressures could impact future margins.
4. Comcast (CMCSA) – Undervalued Despite Broadband Challenges
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.74 (Undervalued)
• Sector: Communication Services
• Key Insight: Comcast is struggling with broadband subscriber losses, but its strong cash flow and wireless expansion plans may support long-term growth.
5. Airbnb (ABNB) – A Travel Recovery Play
• Number of top fund managers buying: 3
• Morningstar Price/Fair Value: 1.04 (Fairly Valued)
• Sector: Consumer Cyclical
• Key Insight: Despite strong post-pandemic travel demand, regulatory challenges and increasing competition remain risks.
6. Keurig Dr Pepper (KDP) – Steady Demand but Facing Competition
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.98 (Fairly Valued)
• Sector: Consumer Defensive
• Key Insight: The coffee and beverage giant has consistent demand, but it faces rising cost pressures and market competition.
7. IQVIA Holdings (IQV) – A Healthcare Data Powerhouse
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.12 (Slightly Overvalued)
• Sector: Healthcare
• Key Insight: A leading player in clinical research and health data analytics, IQVIA benefits from the rising demand for data-driven healthcare insights.
8. Equifax (EFX) – Credit Data Firm with Growth Potential
• Number of top fund managers buying: 2
• Morningstar Price/Fair Value: 1.05 (Fairly Valued)
• Sector: Financial Services
• Key Insight: With strong demand for credit scoring and analytics, Equifax has growth potential, but faces concerns over rising regulatory scrutiny.
9. Arthur J. Gallagher (AJG) – A Resilient Insurance Play
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 1.08 (Slightly Overvalued)
• Sector: Financial Services
• Key Insight: One of the largest insurance brokers, AJG benefits from recurring revenues, but faces challenges from rising insurance costs.
10. Taiwan Semiconductor Manufacturing (TSM) – A Key Player in the AI Chip Boom
• Number of top fund managers buying: 1
• Morningstar Price/Fair Value: 0.89 (Undervalued)
• Sector: Technology
• Key Insight: As the world’s largest semiconductor foundry, TSMC benefits from the growing demand for AI chips, but faces geopolitical risks.
Final Thoughts: Should You Invest in These Stocks?
While top fund managers are buying these stocks, it’s essential to analyze each stock’s valuation, growth potential, and risk factors before investing.
Undervalued Stocks to Watch: Comcast (CMCSA) and Taiwan Semiconductor (TSM)
High-Quality but Overvalued: Apple (AAPL), AbbVie (ABBV), and Procter & Gamble (PG)
Steady Performers with Moderate Risk: Equifax (EFX) and Arthur J. Gallagher (AJG)
Would you add any of these stocks to your portfolio? Let us know in the comments!