In which stock are the best mutual funds investing now

The best mutual funds are constantly looking for thousands of shares, looking for the best growth prospects. Here's what they've found in recent months:

The strongest funds for the last three months have shown a special interest in stocks in these three sectors: defensive, retail and medicine.

Top defensive names include TransDigm, Lockheed Martin, Northrop Grumman and Raytheon. Costco, Home Depot, Starbucks and Target came into the view of investors analyzing the retail sector, while Merck, Edwards Lifesciences and Zoetis helped inject life into the medical industry.

With regard to the largest investments of mutual funds and other institutional investors, these shares have collected the largest inflows of cash. Fidelity National Information Services has been the leader in fund investments for more than $ 1.5 billion in recent reporting periods.

JPMorgan Chase (received approximately $ 946 million), Microsoft ($ 747 million) and L3 Harris Technologies ($ 502 million) also accumulated significant investments.

Not all of the stocks on this list are in or near the buying areas, but many are.

Looking at defensive stocks, TransDigm shows the most power. They are close to optimal levels suitable for investment. Lockheed, Northrop and L3 Harris are also preparing to take off but still have work to do.

Costco, Home Depot and Target retailers are close to buy zones, while the Starbucks giant is still trying to recover and rebound from its 40-week support, but may still spend some time below.

Major Merck pharmaceutical leaders are trading at around 4% below good buying levels. Other shares in the sector, such as Edwards Lifesciences, Stryker and Zoetis, are also showing potential as they try to revive their strengths.

And while the list of new acquisitions of the best mutual funds does not guarantee success, it certainly serves as a good starting point in identifying sizzling hot stocks.

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