It's not just technology: Morningstar named five popular stocks with top U.S. funds

Morningstar analysts have named five non-tech stocks that top managers at major investment funds are betting on. The selection includes large-capitalization companies that are not involved in the artificial intelligence boom. Two of them are from the financial sector, and two more are from the healthcare sector.

Morningstar analysts studied the portfolios of leading investment funds that invest in large U.S. companies. The study included only funds with active management, where decisions are made by professional managers (as opposed to passive funds that simply repeat the structure of indices). In addition, funds with portfolios of no more than 50 stocks were selected that received high reliability ratings from Morningstar - gold, silver or bronze.

Morningstar's analysis identified eight such funds, and the five companies outside the technology sector that top managers are now betting on are the most common.

Mastercard is the second largest payment system in the world, which in 2024 will process transactions worth $10 trillion. The company controls about 30% of the credit card market and is actively developing profitable areas - analytics, loyalty programs and anti-fraud services.

The company's position is secure due to its size, according to Morningstar analyst Brett Horn. "We do not believe that building a new network of comparable scale and reach is feasible in any foreseeable future, and see Mastercard's position in the global payments infrastructure as virtually impregnable," the analyst wrote.

The stock is up 13% over the past 12 months, adding 0.6% at the premarket on Oct. 24.

Eli Lilly is the market leader in diabetes and obesity drugs. Its flagship drugs Mounjaro and Zepbound brought the company 37% of revenue in 2024: that share is projected to reach 50% in 2025, and could eventually reach two-thirds of sales, said Morningstar analyst Karen Andersen.

Eli Lilly is also one of the largest producers of insulin. As Andersen notes, it is difficult for generic manufacturers to copy, so the company is protected from the loss of revenue that typically occurs for other pharma manufacturers after patents expire.

After booming between 2023 and 2024, the stock has corrected 8% over the past 12 months. They were down about 0.2% at the premarket on October 24.

"JPMorgan is arguably the leading bank in the United States. With its leading investment banking, commercial operations, credit card, retail banking and asset and wealth management divisions, it is a force to be reckoned with," Morningstar analyst Suryansh Sharma wrote.

The bank has $3.7 trillion in assets under management, including $800 billion in mutual funds and exchange-traded funds (ETFs), making JPMorgan the largest bank in the U.S. market by that measure.

Shares are up 32% in 12 months year-to-date - stronger than any other company on Morningstar's list of five. They were adding another 0.6% in Friday's premarket.

Marsh & McLennan operates in two key areas - insurance and reinsurance brokerage and consulting.

"Its leading position in the brokerage market will be difficult to squeeze, and its stable customer relationships allow it to capitalize on relatively stable levels of insurance transactions," said analyst Brett Horn.

Despite the stock falling 15% in 2025, the business is resilient thanks to rising interest rates and increased demand for consulting, Morningstar believes. The stock was up 0.7% in the premarket.

Stryker makes medical devices, including artificial joints, surgical robots and equipment for operations. The company's main advantage is high physician loyalty and a strong patent portfolio (about 5,800 patents), Morningstar writes.

The stock is up 9% over the past year, and was up 0.25% in morning trading on Oct. 24.

This article was AI-translated and verified by a human editor