Funds Load Up On Data Center Play, Gold and Retail Stocks

The stock market has whipsawed amid war news but institutional investors have not been sitting on the sidelines. Investor’s Business Daily’s screener for “Stocks That Funds Are Buying” shows three names near buy points.

One of them, Burlington Stores (BURL), is edging past a 332.20 buy point after last week’s attempt to clear that entry. The shares are in a first-stage base. Early stage bases can net higher gains than later-stage ones.

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Burlington Stores sells apparel and accessories at discounted prices. It had 1,212 stores at the close of its fiscal fourth quarter that ended in January.

The retail stock holds a Composite Rating of 93 out of 99 possible and has an Accumulation/Distribution Rating of B. Mutual funds own 79% of outstanding shares.

According to data on IBD MarketSurge, more than 1,000 funds have had a position in the stock over the past eight quarters. The Janus Henderson Enterprise Fund (JAENX), an IBD mutual fund index holding, has shares of Burlington Stores.

Stock Market: Data Center Play In Base

Comfort Systems (FIX) has powered higher as demand for HVAC and cooling systems from data centers has surged. Shares are in a consolidation with a buy point at 1,500. The buy point is also the stock’s all-time high.

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Comfort Systems provides electrical, mechanical and plumbing systems for buildings and has ideal Composite and Earnings Per Share Ratings of 99.

The Accumulation/Distribution Rating sits at B-, indicating moderate buying interest from funds. A total of 62.5% of outstanding shares are with fund managers, with more funds adding the stock to their holdings over the past four quarters. In the IBD mutual fund index, the Lord Abbett Developing Growth Fund (LAGWX) holds shares of the data center play.

Meanwhile, Royal Gold (RGLD) is back above its 21-day moving average and is just below its 50-day line in a consolidation pattern. The buy point of 306.25 is the stock’s all-time high. Note that the stock is a later-stage base that may not net as high a gain as earlier ones.

More funds have been net buyers in six out of the past seven quarters, with institutional holdings at 62% of outstanding shares. The stock’s nearly-neutral Accumulation/Distribution Rating of C- shows lackluster fund activity over the past 13 weeks, however. The well-regarded Fidelity Contrafund (FCNTX) holds shares in the company.

Royal Gold has royalty and stream interests in precious metals mining operations.

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