10 Stocks the Best US Fund Managers Have Been Selling Recently

It’s been a volatile year for stock investors so far. The Morningstar US Market Index was about flat for the year to date through March 3, but there’s been a lot of turbulence. “Broad market indexes have traded within a relatively narrow range this year,” observes Morningstar chief US market strategist Dave Sekera. “Yet, this stability masks significant sector‑level rotation occurring beneath the surface." Given geopolitical risk and tariff questions, among other factors, volatility is likely to stick around for the foreseeable future.

Investors who would like to prune their portfolio by selling stocks may be wondering which stocks they might scale back. As a suggestion, we’re examining which stocks the “smart money” has been selling during the past few months.

Specifically, we’ve taken a look at the latest portfolios of some of the best fund managers. To isolate the top stock investors among current active fund managers, we screened on the following:

• Actively managed funds that land in the US large-value, US large-blend, or US large-growth Morningstar Categories
• Funds with at least one share class earning Morningstar Medalist Ratings of Gold, Silver, or Bronze with 100% analyst coverage
• Funds that hold 50 stocks or fewer as of their most recently reported portfolios

Twenty-five separate fund portfolios passed our screen. We then compared the latest portfolios of these funds with their portfolios three months before to determine what stocks these managers have been selling (all returns in this article are measured on a US dollar basis).

10 Stocks That the Best US Fund Managers Have Been Selling Lately

Here are some of the stocks that top managers have been scaling back during the past few months:

1. Alphabet GOOGL
2. Mercadolibre MELI
3. Warner Bros. Discovery WBD
4. Apple AAPL
5. TE Connectivity TEL
6. ASML ASML
7. John Deere DE
8. EOG Resources EOG
9. American International Group AIG
10. Cloudflare NET

Don’t take this as a comprehensive list of stocks to sell. Why? Because a couple of these stocks remain sizable holdings among the best managers; trimming a stock position isn’t the same as bailing out of a name entirely. Also, while some of these stocks look overvalued according to Morningstar, most look fairly valued, or even undervalued. And of course, selling stocks can have tax implications, and tax circumstances differ from investor to investor.

Here’s a little bit about each of the stocks the best fund managers have been selling, along with some commentary from the Morningstar analyst who follows the company. All data is as of March 2, 2026.

Alphabet

• Number of best fund managers selling the stock: 10
• Morningstar Rating: 3 stars
• Economic Moat: Wide
• Sector: Communication Services

Alphabet tops our list of the stocks that the best fund managers are selling, yet at the same time, it remains a top holding among these investors, too. We think shares are worth USD 340, and they are trading in a range that we consider to be fairly valued, when adjusted for uncertainty.

After digesting Alphabet’s latest results last month, Morningstar senior analyst Malik Ahmed Khan had this to say:

Alphabet reported strong fourth-quarter earnings, with sales up 18% to USD 113 billion and adjusted operating margins down 50 basis points to 31.6%. Google Cloud continues to be the star of the show, accelerating both sequentially and year over year to 48% growth.

Why it matters: Long gone are the days when the market had written off Alphabet as an artificial intelligence laggard. The massive surge in Alphabet shares has closely mirrored a turning tide, with investors now viewing the firm as an AI winner, with AI driving sales across the firm’s many segments.

• The most obvious beneficiary of AI within Alphabet remains its cloud business, which now constitutes 16% of the firm’s total top line. The launch of Gemini 3, Alphabet’s latest large language model, continued to expand the firm’s enterprise and consumer market share.
• We are impressed at how Alphabet continues to integrate AI within Google Search. By adding features such as AI Overviews and AI Mode, the firm has not only mitigated a real competitive threat from GenAI chatbots but also increased the number of queries and the ad price per query.

The bottom line: We maintain our $340 fair value estimate for wide-moat Alphabet and continue to view the firm as a clear leader in AI. Shares traded slightly down after hours, and we view them as fairly valued.

• We continue to applaud Alphabet’s full-stack AI strategy, which enables the firm to be the master of its own destiny. Unlike peers that rely on external AI labs and AI chips, Alphabet’s investments in Google DeepMind and TPUs appear increasingly prescient over time.

Big picture: While results remain upbeat, it is important to step back and remain cognizant of the costs associated with AI. Management guided to approximately $180 billion in capital expenditures in 2026, a 97% year-over-year increase, and 38% of our sales forecast for the year.

Coming up: We expect a broader rollout of ads within AI Search in 2026, which should add incremental Google Search sales.

Read Morningstar’s full report on Alphabet.

MercadoLibre

• Number of best fund managers selling the stock: 4
• Morningstar Rating: 4 stars
• Economic Moat: Wide
• Sector: Consumer Cyclical

MercadoLibre is the only consumer cyclical stock that the best managers have been selling. We think the stock of this wide-moat company is worth $2,190, and its shares trade 22% below our fair value.

Morningstar senior analyst Dan Wasiolek published this note after MercadoLibre reported earnings late last month.

MercadoLibre’s fourth-quarter gross merchandise volume grew 37% (constant currency), accelerating from last quarter’s 35%. The credit portfolio rose 90% to USD 12.5 billion. Operating margins fell to 10.1% from 13.5% on platform investments.

Why it matters: MercadoLibre’s shipping and credit investments are yielding positive results and enhancing the company’s network advantage. We think the company’s platform edge will endure amid agentic artificial intelligence fears of disintermediation.

• Investment behind free shipping of more items in its core Brazil market helped accelerate GMV growth to 46% from 36% last quarter. Also, the company’s data models are unearthing new credit customers, with the firm issuing 3 million cards in the quarter, up from 2 million last quarter.
• While agentic AI models can search for products, we think they will struggle to deliver MercadoLibre’s full value proposition, which includes payments, leading shipping costs and delivery times, and customer service. Also, the firm is not sitting idle, overlaying agentic AI on its platform.

The bottom line: We don’t plan to materially change our $2,190 fair value estimate for wide-moat MercadoLibre, as higher near-term investments are offset by stronger revenue. Shares are slightly undervalued as the market is pricing in more severe AI competition.

• We plan to increase our 2026 revenue growth to the high 20s from 24%, offset by higher logistics and credit investments.
• We remain constructive on MercadoLibre’s opportunity in Latin America, given 85% of the region’s retail spending still occurs at physical stores. We believe the company’s current share of less than 5% in the retail market can expand for the foreseeable future.

Read Morningstar’s full report on MercadoLibre.

Warner Bros. Discovery

• Number of best fund managers selling the stock: 3
• Morningstar Rating: 3 stars
• Economic Moat: None
• Sector: Communication Services

Warner Bros. Discovery will be bought out by Paramount PARA after a good deal of back and forth with Netflix NFLX. Warner Bros. Discovery currently trades near our USD 28 fair value estimate.

Here’s Morningstar senior analyst Matthew Dolgin’s take on the deal.

After Warner Bros. Discovery deemed Paramount’s revised bid for its company as superior to the one it had in place with Netflix, Netflix declined to exercise its right to match. We therefore expect Warner to officially accept Paramount’s offer to buy the whole company for USD 31 per share.

Why it matters: Netflix will receive a USD 2.8 billion termination fee from Warner, paid by Paramount. Warner shareholders will receive USD 31 per share in cash for their entire stakes in Warner. If the deal hasn’t closed by Oct. 1, 2026, Warner shareholders will receive an USD 0.25 per share each quarter.

• This was absolutely the right move for Netflix, in our view. We estimated it was overpaying for Warner’s streaming and studios when it had no need to, given its extraordinarily strong business.
• This is the best outcome for Warner shareholders, in our view, as we’ve felt that, with a higher likelihood of prompt regulatory approval and uncertainty surrounding the value and risk of the network business they would have retained, the best offer would have been USD 30 in cash.

The bottom line: We also think this is the best outcome for Paramount. Unlike Netflix, its business could use a shot in the arm and an immediate boost to achieve the greater scale it needs. Also, with the combination of linear networks, it can realize much more cost savings than Netflix can to offset the premium it’s paying.

• We maintain our USD 28 fair value estimate for Warner, discounting the value we believe they are almost—but not completely—certain to realize within the next year. We intend to raise our fair value estimate for Netflix to USD 80 from USD 79 to account for the USD 2.8 billion it is set to receive.
• We now think Paramount is likely to complete its acquisition of Warner. We are maintaining our USD 20 fair value estimate while we work through financial details, and we believe the stock is undervalued.

Between the lines: We don’t anticipate Paramount will face any regulatory difficulties.

Read Morningstar’s full report on Warner Bros. Discovery.

Apple

• Number of best fund managers selling the stock: 8
• Morningstar Rating: 3 stars
• Economic Moat: Wide
• Sector: Technology

Apple is the first of four technology stocks on our list of names that the best fund managers have been selling; it’s also a top holding among the group. We think the stock is about fairly valued today and assign it a fair value estimate of USD 260.

Morningstar senior analyst William Kerwin had this take on Apple’s latest earnings report.

Apple posted stellar December-quarter results, led by 23% year-over-year growth in iPhone revenue and over 100 basis points of gross margin expansion. March-quarter guidance implies continued high growth and further margin expansion.

Why it matters: IPhone growth was stunning, coming in about 10% higher than our model. We believe Apple is benefiting from a strong refresh cycle in 2026, driven by pent-up customer demand. Profitability also impressed us amid headwinds from memory prices and ongoing tariff costs.

• Revenue growth for China was an exceptional 38% year over year and shows a sharp inflection from two years of underperformance. We still see longer-term headwinds to Apple’s China growth, but this quarter shows the firm’s ability to compete and win against beefed-up domestic competition.
• Supply constraints are limiting Apple’s ability to meet demand, primarily for iPhone and AirPods. We expect limited supply, predominantly as Apple competes for chip production capacity at TSMC with the likes of Nvidia, to endure through the year but to have a low impact on results.

The bottom line: We raise our fair value estimate for wide-moat Apple to USD 260 per share from USD 240, reflecting stronger short-term iPhone growth and higher profitability. Shares were slightly up after hours and appear fairly valued to us.

• We now expect a strong iPhone growth cycle in fiscal 2026, with revenue growth in the low teens, up from high single digits previously. We continue to see mid-single-digit growth over the long term, but Apple is benefiting from a strong refresh cycle with the iPhone 17 family in the short term.
• Apple’s relentless gross margin expansion, despite tariffs and skyrocketing memory chip prices, is raising our expectations. We project Apple will reach a 50% gross margin in two years, up from 38% in 2020. We attribute this expansion to Apple silicon and expanding services sales.

Read Morningstar’s full report on Apple.

TE Connectivity

• Number of best fund managers selling the stock: 2
• Morningstar Rating: 3 stars
• Economic Moat: Narrow
• Sector: Technology

The second tech company on our list of stocks that the best managers have been selling, TE Connectivity trades near our fair value estimate of USD 200.

Here’s what Morningstar’s Kerwin has to say about the business.

We see TE Connectivity as a technology leader in connectors, with a wide-ranging portfolio of sticky custom and semi-custom components. TE has maintained a leading share of the global connector market for the last decade, specifically dominating the automotive connector market, from which it derives almost half of its revenue. While the firm’s entire business benefits from trends toward efficiency and connectivity, these are especially notable in cars, where shifts toward electric and autonomous vehicles provide lucrative opportunities for TE to sell into new vehicle sockets, like an onboard charger or advanced driver-assist system.

TE’s products offer high performance and reliability for mission-critical applications in harsh environments. As such, its customer relationships tend to be very sticky, with customers facing high financial and opportunity costs from switching to another component supplier, as well as the risk of component failure in new products. TE’s customers also rely on the firm to supply cutting-edge products that power new capabilities in end applications. As older products become commoditized, the firm is able to maintain pricing power with new designs for new products. As a result of these switching costs and pricing power, we believe TE possesses a narrow economic moat.

In the future, we think TE will focus on increasing its dollar content in end applications across its end markets. TE’s products pave the way for greater electrification and connectivity in vehicles, planes, and factories, enabling the firm to capture a larger share of these end products’ electrical architectures. We also see artificial intelligence investment as an increasing growth vector for the firm, with rapidly rising sales into data center connectivity and power. We also think TE will remain a serial acquirer, bolting on smaller component players to expand its geographic and technological reach. We expect TE to continue modestly expanding its midcycle gross and operating margins via higher volumes and trimming the fixed-asset portfolio it has gained via acquisitions.

Read Morningstar’s full report on TE Connectivity.

ASML

• Number of best fund managers selling the stock: 3
• Morningstar Rating: 2 stars
• Economic Moat: Wide
• Sector: Technology

The only overvalued name on our list of stocks that the best fund managers have been selling, ASML trades 16% above our fair value estimate of EUR 1,200.

Morningstar senior analyst Javier Correonero had this to say about the business after earnings.

ASML exited 2025 with a clear reacceleration. Fourth-quarter net bookings reached an all-time high of EUR 13.2 billion, including EUR 7.4 billion in extreme ultraviolet lithography orders, and a year-end backlog of EUR 38.8 billion.

Why it matters: 2026 guidance followed the strong fourth-quarter step-up, and management expects sales of EUR 34 billion to EUR 39 billion, a 12% increase at the midpoint, mainly driven by EUV growth.

• Demand looks strong across the board with multiple drivers contributing. TSMC is adding more 3nm capacity while 2nm production is also ramping up. The DRAM market still looks tight on capacity, meaning more fabs and tool orders are expected in the next two years, while memory makers also migrate more DRAM layers to EUV.

The bottom line: We maintain our EUR 1,000 fair value estimate, and we see shares as overvalued right now. The current 45 times forward PE multiple already embeds a lot of optimism and is in line with valuation peaks seen in 2021 and mid-2024. Investors are pricing in a lot of upside for 2026, 2027, and potentially 2028, and delivering incremental positive news becomes more challenging as expectations remain high.

• We model sales of EUR 37.6 billion in 2026, above the midpoint of guidance, as we believe ASML will do everything it can to expedite shipments and shorten lead times in an environment of high demand. We model a further 14% revenue growth in 2027, with sales above EUR 43 billion, as strong 2026 EUV orders should flow through to 2027.

Big picture: We view positively the Jan. 28 announcement to reduce 1,700 net positions across the firm with the goal of increasing the mix of engineers and reducing the mix of managers. ASML’s long-term success is built on its outstanding engineering capabilities, and any decision that fosters innovation and agility is positive.

Read Morningstar’s full report on ASML.

John Deere

• Number of best fund managers selling the stock: 5
• Morningstar Rating: 3 stars
• Morningstar Style Box: Wide
• Sector: Industrials

John Deere is the final of four wide-moat stocks our top managers are selling. The stock currently trades in line with our USD 600 fair value estimate.

Morningstar analyst George Maglares had this to say after Deere issued earnings a few weeks ago.

Deere reported 18% growth in its industrial businesses in the first quarter, with broad-based gains across the board, including 3% in core Precision Ag, 24% in Small Ag, and 34% in Construction. Tariffs weighed approximately $250 million in the quarter, but profitability was strong.

Why it matters: The company boosted its net income guidance to USD 4.5 billion-USD 5 billion from USD 4 billion-USD 4.75 billion, an almost 9% boost from midpoint to midpoint. Deere shares were trading more than 10% intraday, having already gained substantially year-to-date as investors welcome the positive commentary on agriculture markets.

• The company’s outlook strikes us as conservative. The high end of the ranges for each segment and other elements of guidance implies USD 4.3 billion of net income on our math. This implies some combination of Precision Ag being less bad or the other segments delivering even more robust performance.
• Deere should be well on its way to achieving its LEAP ambitions, including a 10% compound annual revenue growth rate, 20% midcycle operating margins, and significantly greater precision agriculture penetration across farmed acres by 2030.

The bottom line: We are increasing our fair value estimate on wide-moat Deere to USD 600 per share from USD 550 as we incorporate the new guidance and increase our Stage II EBI growth rate to 4% from 3%, which is based on our growing conviction that structural demand to feed a growing population, combined with new technology that will drive higher profits for longer.

• Agricultural machinery stocks have been on a tear as management teams reassure on the cycle. However, we are reluctant to increase our targets further before seeing stronger commodity prices, though we acknowledge the recent increase in soybean futures.

Read Morningstar’s full report on John Deere.

EOG Resources

• Number of best fund managers selling the stock: 2
• Morningstar Rating: 4 stars
• Economic Moat: Narrow
• Sector: Energy

EOG Resources is one of two undervalued stocks that the best managers have been scaling back in. We think the stock of this narrow-moat company looks 8% undervalued relative to our USD 240 fair value estimate.

Here’s what Morningstar director Josh Aguilar had to say about the company after its recent earnings release.

EOG’s total production of 1,399 mboe/d rose nearly 8% sequentially, better than guidance and our expectations. While non-GAAP cash unit costs of USD 10.22 and capex of USD 1,639, these costs were marginally higher than we earmarked, net-net, EOG outperformed our expectations.

Why it matters: Natural gas and natural gas liquids drove production outperformance, which we attribute to better-than-expected results from the Encino integration and the success of the Utica basin. EOG has met its USD 150 million in savings from Encino ahead of schedule.

• Low-cost production matters because of the available cash that can be returned to shareholders. This is the strategy underpinning E&P since the boom-and-bust of the Shale Revolution. EOG’s 2025 cash return relative to market cap was 8%, an attractive “bird in the hand” relative to alternatives.
• The buyback proportion was over half of the cash return, which we like, given the continued upside we see in the stock. We think the ratio is optimal because while the stock is discounted, the margin of safety isn’t compelling. EOG has the balance sheet to lean into repurchases if the discount grows.

The bottom line: We expect to reduce our USD 139 fair value estimate by roughly a mid-single-digit percentage as we reassess NGL production, but even with the valuation decrease, the stock still looks discounted. EOG is a higher-quality name at the low end of the cost curve that earns high returns.

• We maintain our Exemplary capital allocation and Medium Uncertainty Ratings. EOG’s strong balance sheet (net debt/EBITDA well south of 1 turn), steady free cash flow backstopped by its low-cost Delaware asset, and management’s willingness to return cash, all support our ratings.

Long view: Despite global macroeconomic noise (supply concerns, geopolitical risks), we think EOG remains a strong bet given the visibility into all-in breakeven (including cash returns and corporate costs), even in tough oil price environments.

Read Morningstar’s full report on EOG Resources.

American International Group

• Number of best fund managers selling the stock: 2
• Morningstar Rating: 3 stars
• Economic Moat: None
• Sector: Financial Services

American International Group is the only financial-services name on the list of stocks that the best fund managers have been selling. The stock is fairly valued relative to our USD 79 fair value estimate.

Morningstar senior analyst Brett Horn noted this after the company reported earnings last month.

American International Group’s fourth-quarter results were solid, with an annualized adjusted return on equity of 12%, leading to a full-year return level of 11%.

Why it matters: Management had set a target of at least a 10% return on equity for 2025 and modestly bested this mark. We think the company has demonstrated its ability to maintain an acceptable level of returns going forward.

• The reported combined ratio for the fourth quarter improved to 88.8%, from 92.5% last year. However, this improvement was driven by lower catastrophe losses. On an underlying basis, underwriting profitability held basically in line with recent quarters.
• AIG continues to benefit from opportunities to reinvest long-term fixed income at higher interest rates, with net investment income increasing 9% year over year, excluding investment gains and losses.

The bottom line: We will maintain our USD 79 fair value estimate for the no-moat company and see the shares as about fairly valued.

• While we appreciate the progress that AIG has made toward improving returns, this has occurred against a very favorable industry backdrop. While we expect industry tailwinds to remain in place in the near term, we believe that returns for industry participants will normalize over the next few years.
• We believe weaker pricing will be the primary catalyst for lower industry returns over time and see signs that this is starting to occur in certain business lines. A move back to more normalized industry conditions could make further improvement in AIG’s ROE more difficult to achieve.

Read Morningstar’s full report on American International Group.

Cloudflare

• Number of best fund managers selling the stock: 2
• Morningstar Rating: 3 stars
• Economic Moat: Narrow
• Sector: Technology

Cloudflare rounds out our list of stocks that the best managers have been selling. We think the stock of this narrow-moat company is worth USD 200, and its shares look fairly valued today when adjusted for their Very High Uncertainty.

Morningstar’s Khan published this note after Cloudflare reported earnings in February.

Cloudflare reported solid fourth-quarter results, with sales growth accelerating to 34% while adjusted operating income remained flat at 15%. The firm’s channel partner success continues to drive results, with channel sales up 74%, accounting for 29% of total sales in the quarter.

Why it matters: Cloudflare’s business continues to hum. Increased spending on artificial intelligence has boosted demand for the firm’s products across both security and infrastructure.

• On the security side, the firm’s zero-trust offering appears to be gaining momentum, with companies increasingly favoring Cloudflare’s distributed infrastructure as the connective layer between enterprises and their users, applications, and data.
• On infrastructure, Cloudflare’s Workers platform offers a compelling cost/performance for companies looking to run inference. Especially for latency-sensitive AI use cases, we see strong demand for Cloudflare’s edge computing infrastructure.

The bottom line: We are raising our fair value estimate for narrow-moat Cloudflare to $200 from $185 as we raise our top-line growth forecast to account for the positive AI-related tailwinds behind the company.

• While we see shares as fairly valued, we highlight Cloudflare as an incredibly well-run business worth investors’ attention for adding AI exposure beyond hyperscalers and semiconductor companies.

Big picture: We see Cloudflare’s distributed infrastructure as well-suited for latency-sensitive inference workloads such as rapid tool calls, AI features within applications, and so on. The firm’s 300-plus edge node infrastructure is tailor-made for the inference demand we are seeing inflect upward.

Coming up: This inference demand is not theoretical. The firm’s 2026 outlook calls for 29% sales growth. With forward-looking metrics such as remaining performance obligations up more than 40%, we see this guidance as overly conservative and model upside to the firm’s 2026 outlook.

Read Morningstar’s full report on Cloudflare.

How Do We Determine Which Stocks the Best Managers Are Selling?

To determine which stocks the top managers are selling, we compared the latest portfolios of these funds with their portfolios three months prior. We then calculated a “sell score” for each stock, which is a weighted average that allows us to make apples-to-apples comparisons of the most-sold stocks. One or two managers making large sales of a stock could lead to the same sell score as many managers selling small amounts of a stock.

Morningstar senior editor Margaret Giles and lead developer Lauren Solberg developed the methodologies and tools required to create this content.