Although 2025 has certainly been a roller-coaster ride for investors in the US stock market, stocks are actually flat versus where they started the year. In late May, US stocks look about fairly valued today according to Morningstar.

Investors who would like to prune their portfolio by selling stocks may be wondering which stocks they might scale back in during a fairly valued market. For some suggestions, 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-nine 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. Most of the portfolios we examined were as of March 31, 2025, which means the sales featured here don’t include any selling activity during the tariff-induced market selloff in April and the subsequent rebound.

10 US stocks that the best fund managers are selling in 2025

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

  1. Apple AAPL
  2. Comcast CMCSA
  3. AbbVie ABBV
  4. Alphabet GOOGL
  5. Netflix NFLX
  6. Mastercard MA
  7. Medtronic MDT
  8. PepsiCo PEP
  9. Stryker SYK
  10. NXP Semiconductor NXPI

Don’t take this as a comprehensive list of stocks to sell. Why? Because some 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, some look fairly valued, or even undervalued, too. 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 May 20, 2025.

Apple

  • Number of best fund managers selling the stock: 13
  • Morningstar Price/Fair Value: 1.03
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Core
  • Sector: Technology

Apple tops our list of the stocks that the best fund managers are selling, yet it remains a widely held stock among these investors: 17 of the funds on our list own the stock. Apple stock is slightly overvalued today relative to our $200 fair value estimate.

Here’s what Morningstar senior analyst William Kerwin had to say after Apple released earnings in early May.

Apple’s March-quarter revenue rose 5% year over year to $95.4 billion, with iPhone revenue rising 2% to $46.8 billion. March-quarter gross margin rose 50 basis points year over year to 47.1%. June-quarter guidance calls for modest year-over-year revenue growth and sequential margin contraction.

Why it matters: Results and revenue guidance were positive to us, but margin guidance was weak, resulting from an estimated $900 million impact from US tariffs. As Apple is primarily a hardware company, we see material risk from tariffs, both on profitability and longer-term demand.

  • Apple’s core devices are currently exempt from US tariffs, and the June quarter impact is primarily from accessories. Nonetheless, Apple remains at risk of a policy change. Positively, most US iPhone units are imported from India, which faces a lower current tariff rate than China (10% versus 145%).
  • Management noted no signs of customers accelerating purchases in advance of potentially higher costs from tariffs. We still surmise this is happening, but mostly on the margin. We also like that Apple is building up its own inventory to bring in lower-cost products as a precautionary measure.

The bottom line: We maintain our $200 fair value estimate for wide-moat Apple. We lowered our short-term profit forecast to reflect direct tariff costs, but we maintain our base-case expectation for Apple to earn an exemption from US tariffs in the long term. We see shares as fairly valued.

  • We estimate a 25% gross downside risk to earnings and Apple’s intrinsic valuation if it were to lose its exemption and face the full brunt of tariffs. This gross estimate assumes no mitigation actions from Apple and a 145% rate for imports from China.
  • We wouldn’t expect Apple to swallow this entire downside risk, as we would expect the firm to raise prices in the US and accelerate moving US import production into other countries like India.

Comcast

  • Number of best fund managers selling the stock: 1
  • Morningstar Price/Fair Value: 0.73
  • Morningstar Economic Moat Rating: Narrow
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Value
  • Sector: Communication Services

Comcast is the first undervalued stock among the sells of our best managers. We think shares are worth $49, and they currently trade 27% below our fair value estimate.

After digesting Comcast’s latest results, Morningstar director Mike Hodel had this to say:

Comcast’s first-quarter results reflect continued challenges in the broadband market, where customer losses continue to accelerate (199,000 from 65,000 last year). Without the benefit of political ad sales and with the theme park business under pressure, total revenue declined 0.6% year over year.

Why it matters: With Comcast shifting its broadband strategy last quarter, it telegraphed that the competitive situation would worsen before improving, and that is playing out. While customer growth was a bit softer than our expectations, profitability and cash flow remain strong.

  • Investors looking for growth will likely remain disappointed for the next several quarters. However, tight cost control and the shift away from low-margin television offerings lifted EBITDA nearly 2% compared with a year ago. Free cash flow increased to $5.4 billion from $4.5 billion last year.
  • Comcast has reduced its share count more than 5% over the past year. The stock also now provides a 4% dividend yield.

The bottom line: We cut our expectations sharply last quarter, and we don’t see a reason to lower them further. Our fair value estimate remains $49, putting shares at a significant discount. We also maintain our narrow moat rating.

  • We expect the broadband customer base will shrink over the next several years, with the pace gradually declining as fixed-wireless carriers fill excess capacity and Comcast’s network expansion efforts become more meaningful.
  • It is unclear how Comcast’s efforts to improve broadband growth will show up in the financials. Regardless, we expect EBITDA to take a hit and begin to decline as 2025 progresses.

Long view: We believe the shift to “everyday” broadband pricing is long overdue. Steep introductory price discounts only encourage switching providers. The firm still plans to give a free wireless line for a year, but at least this offer deepens the customer relationship.

AbbVie

  • Number of best fund managers selling the stock: 3
  • Morningstar Price/Fair Value: 1.00
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: High
  • Morningstar Style Box: Large Value
  • Sector: Healthcare

Although drugmaker AbbVie has been a name that a few of the best managers have been selling, we think the stock of this wide-moat company looks fairly valued relative to our $184 fair value estimate. That being said, uncertainty around the Trump administration’s goal of bringing the US cost of drugs more in line with the costs of other developed countries casts uncertainty around AbbVie and other drugmakers.

Here’s what Morningstar director Karen Andersen had to say about AbbVie after earnings.

AbbVie reported 8.4% revenue growth and 6.5% adjusted diluted EPS growth in the first quarter. Management raised its 2025 adjusted diluted EPS guidance by $0.10 at the midpoint to a range of $12.09-$12.29, but this does not include the Gubra licensing agreement or potential pharma tariffs.

Why it matters: Given the significant uncertainty surrounding potential regulatory timeline delays and pharmaceutical tariffs, AbbVie’s strong first-quarter performance and guidance were reassuring.

  • Skyrizi (71% growth) and Rinvoq (57%) were the strongest drivers of outperformance in the quarter, and management’s combined $900-million guidance raise for these two products more than offset the $500-million lower Humira guidance due to intense biosimilar competition and lower pricing.Skyrizi (71% growth) and Rinvoq (57%) were the strongest drivers of outperformance in the quarter, and management’s combined $900-million guidance raise for these two products more than offset the $500-million lower Humira guidance due to intense biosimilar competition and lower pricing.
  • While management did not quantify any potential tariff exposure for pharmaceuticals, it did signal that the effect would be in line with the industry impact and emphasized its US Skyrizi manufacturing and $10 billion planned investment in US manufacturing over the next 10 years.While management did not quantify any potential tariff exposure for pharmaceuticals, it did signal that the effect would be in line with the industry impact and emphasized its US Skyrizi manufacturing and $10 billion planned investment in US manufacturing over the next 10 years.

The bottom line: We’re maintaining our $184 fair value estimate for AbbVie, and we think the firm’s broad, growing portfolio and intriguing pipeline warrant a wide moat. However, we see shares as fairly valued at recent prices, and we’re watching the early-stage pipeline for potential to raise our valuation.

  • We’re most interested in whether AbbVie can build on its Skyrizi and Rinvoq success in immunology with new combinations in the pipeline, such as programs targeting TL1A, alpha-4 beta-7, and IL-1 alpha/beta, and we expect some initial data in 2026.We’re most interested in whether AbbVie can build on its Skyrizi and Rinvoq success in immunology with new combinations in the pipeline, such as programs targeting TL1A, alpha-4 beta-7, and IL-1 alpha/beta, and we expect some initial data in 2026.
  • The recent Gubra licensing deal brings rights to phase 1 amylin drug ABBV-295, which has had impressive data in obesity over a six-week time horizon at a relatively low 2 mg weekly dose. We’re carefully watching for potential 12-week data at higher doses from this study in 2026.The recent Gubra licensing deal brings rights to phase 1 amylin drug ABBV-295, which has had impressive data in obesity over a six-week time horizon at a relatively low 2 mg weekly dose. We’re carefully watching for potential 12-week data at higher doses from this study in 2026.

Alphabet

  • Number of best fund managers selling the stock: 9
  • Morningstar Price/Fair Value: 0.69
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Value
  • Sector: Communication Services

The most undervalued stock on our list of stocks the best managers have been selling, Alphabet trades at a 31% discount to our fair value estimate of $237. We think the stock is an attractive buy, not a sell.

Here’s what Morningstar analyst Malik Ahmed Khan had to say after Alphabet released earnings.

Alphabet kicked off 2025 with a set of solid results, with the firm’s sales and operating margins growing 12% and 230 basis points year over year, respectively. Google Cloud continues to be the firm’s growth engine, growing 28% year over year.

Why it matters: Despite the turbulent macroenvironment as well as ongoing antitrust cases and tough competition in generative AI, we were impressed by Alphabet’s continued strong execution, with the firm showing clear progress on the generative AI monetization front.

The bottom line: We maintain our $237 per-share fair value estimate for wide-moat Alphabet and continue to view the stock as materially undervalued even after shares climbed 5% after hours.

  • While we believe investor concerns around a tariff-induced digital-ad spending slowdown and antitrust-related impact on Alphabet’s business are valid, we think the selloff in the firm’s shares has been overly punitive, creating an attractive buying opportunity.While we believe investor concerns around a tariff-induced digital-ad spending slowdown and antitrust-related impact on Alphabet’s business are valid, we think the selloff in the firm’s shares has been overly punitive, creating an attractive buying opportunity.
  • We reiterate our view that Alphabet will be able to navigate the antitrust cases against it without material value destruction in its businesses. Also, we expect the firm’s diversified end market and geographic exposure to insulate its ad business from a sharp decline in ad spending.We reiterate our view that Alphabet will be able to navigate the antitrust cases against it without material value destruction in its businesses. Also, we expect the firm’s diversified end market and geographic exposure to insulate its ad business from a sharp decline in ad spending.

Coming up: Despite the ongoing macroeconomic uncertainty, Alphabet restated its intention to spend $75 billion in capital expenditure in 2025. We believe the firm has a lucrative long-term opportunity in generative AI and view these investments as sound.

Netflix

  • Number of best fund managers selling the stock: 6
  • Morningstar Price/Fair Value: 1.66
  • Morningstar Economic Moat Rating: Narrow
  • Morningstar Uncertainty Rating: High
  • Morningstar Style Box: Large Growth
  • Sector: Communication Services

The most overvalued stock that our best fund managers sold is Netflix. This narrow-moat stock trades 66% above our $720 fair value estimate.

Netflix’s first-quarter results featured blow-away profits and solid sales; here’s Morningstar senior analyst Matthew Dolgin‘s take after earnings.

Netflix posted an incredible 32% operating margin—350 basis points ahead of guidance—and 25% earnings per share growth in the first quarter. It also exceeded its sales guidance. However, it only maintained its full-year outlook, including for operating margins, and US sales were soft.

Why it matters: The stunning profit appears much more related to the timing of expenses rather than significant further improvement in operating performance.

  • Netflix expects even better second-quarter margins. However, expenses will rise substantially in the second half, primarily due to the release of films and other programming and associated marketing costs.
  • Content spending grew only 1% year over year, but we still expect a mid-single-digit increase for the full year. The firm maintained its 2025 guidance for $8 billion in free cash flow after generating $2.6 billion in the quarter.

The bottom line: Our outlook is generally unchanged after these results. We maintain our narrow moat and raise our fair value estimate to $720 per share from $700 due to the time value of money.

  • Our full-year estimate for earnings per share is rising, but this is largely due to share repurchases, which we don’t think add value at the current stock price.
  • We think management may now be conservative with 2025 margins, but we’re not adjusting our longer-term projections.

Between the lines: Sales growth in the US was disappointing, at only 9% year over year. Management downplayed the softness and said sales would reaccelerate in the second quarter after price hikes took effect midway through the first quarter, but we’re not reassured.

  • Netflix is no longer reporting member numbers, but 9% growth means either the firm lost US members or average revenue per member declined. We think it’s likely both. Shifts to the ad-supported plan can weigh on ARM, and major broadcasts underpinned a surge of member additions last quarter.
  • The firm could’ve lost over a million US members and still seen ARM decline.The firm could’ve lost over a million US members and still seen ARM decline.

Mastercard

  • Number of best fund managers selling the stock: 11
  • Morningstar Price/Fair Value: 1.16
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Growth
  • Sector: Financial Services

Mastercard is the only financial-services stock on our list of names the best fund managers have been selling. We think the stock is 16% overvalued today and assign it a fair value estimate of $500.

Morningstar senior analyst Brett Horn had this take after Mastercard reported earnings a few weeks ago.

Mastercard’s first-quarter results contained no major surprises and largely mirrored what we saw from Visa. While consumer spending is holding steady for now, we see uncertainty ahead.

Why it matters: On a constant-currency basis, net revenue grew 17% year over year, which was in line with the previous quarter. In our view, recent results highlight the strong growth the wide-moat company can achieve in a stable environment.

  • Year-over-year gross dollar volume growth was 9% on a constant currency basis, with transactions up 9% as well. Volume growth dipped a bit sequentially but held within the range we’ve seen over the past year. Like Visa, Mastercard has also seen a slight uptick in growth in April.
  • The tailwind from the bounceback in travel has been falling off, and that continued during the first quarter. Constant-currency cross-border volume excluding intra-Europe transactions—which are priced similarly to domestic transactions—grew 16% year over year in the March quarter, down from 20% growth in the fourth quarter. We believe most of the benefit from the travel recovery has been realized.

The bottom line: We will maintain our $500 per-share fair value estimate and see shares as modestly overvalued.

  • Mastercard’s management largely echoed comments we recently heard from Visa, suggesting consumer spending is holding steady for now. However, Mastercard’s results remain leveraged to consumer spending, and particularly to some discretionary areas such as cross-border volume. In our view, tariffs create significant near-term uncertainty going forward, and it will take time for the impact to be seen.
  • Mastercard saw solid margin improvement, with adjusted operating margins (based on net revenue) increasing 50 basis points year over year. Client incentive constant-currency growth of 15% was relatively muted and a bit below revenue growth.

Medtronic

  • Number of best fund managers selling the stock: 3
  • Morningstar Price/Fair Value: 0.77
  • Morningstar Economic Moat Rating: Narrow
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Value
  • Sector: Healthcare

One of the more undervalued names on the list of stocks the best managers are selling, narrow-moat Medtronic trades 23% below our fair value estimate of $112.

Morningstar senior analyst Debbie Wang has this to say about the business.

Medtronic’s standing as the largest pure-play medical-device maker remains a force to be reckoned with in the med-tech landscape. Medtronic’s diversified product portfolio aimed at a wide range of chronic diseases spans therapeutic areas including cardiac, diabetes, chronic pain, as well as various products for acute care. This has put Medtronic in a strong position as a major vendor to hospital customers.

All along, the firm has largely remained true to its fundamental strategy of innovation, which has often resulted in differentiated technology. It is often first to market with new products and has invested heavily in internal research and development efforts as well as acquiring emerging technologies. However, in the postreform healthcare world where there are higher hurdles for securing reimbursement for next-generation technology, Medtronic has had to move in the direction of introducing meaningful innovation that can demonstrate measurable safety or efficacy improvements. The firm has also begun to partner more closely with its hospital clients by offering greater breadth of products and services to help hospitals operate more efficiently.

While some technology platforms, such as cardiac rhythm management, have reached maturity, Medtronic has established a significant footprint in new therapies, including transcatheter aortic valves and stent retrievers for ischemic stroke. The firm is also early out of the gate for emerging technologies like renal denervation for uncontrolled hypertension and pulsed field ablation for atrial fibrillation.

As with many device makers, Medtronic has augmented its internal innovation with acquisitions of technology platforms, running the risk of overpaying. The large acquisition of Covidien depressed returns for far longer than typically seen among device makers when engaging in mergers and acquisitions. We remain wary that Medtronic, by virtue of its size and cash flows, remains one of the few medical-device competitors that could entertain another truly large acquisition.

PepsiCo

  • Number of best fund managers selling the stock: 4
  • Morningstar Price/Fair Value: 0.78
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: Low
  • Morningstar Style Box: Large Value
  • Sector: Consumer Defensive

Wide-moat Pepsi is one of the most attractive stocks among those our top managers are selling: The stock currently trades 22% below our $170 fair value estimate.

Morningstar analyst Dan Su had this to say after Pepsi reduced its forecast for the year.

PepsiCo posted 1% organic sales growth in the first quarter of 2025 as a 5% lift in international revenue more than offset a 2% decline in US food sales. Core constant-currency operating profit fell 1%.

Why it matters: Strong international performance enabled PepsiCo to reaffirm its low-single-digit organic sales growth outlook for 2025. However, the firm reduced full-year EPS outlook from low-single-digit growth to a 3% decline due to weaker US demand and higher supply chain costs.

  • Internationally, growth prospects are particularly strong in Europe, India, and Brazil, where PepsiCo has the highest sales exposure. However, macro and tariff headwinds may continue to weigh on consumer demand in Mexico and China.
  • In the US, beverage performance improved with a 14% rise in organic operating profits on favorable pricing and cost saving. But a 1% decline in snack volume suggests that the Frito Lay turnaround will likely take a longer time and more investments.

The bottom line: We plan to trim our $170 per-share fair value estimate for wide-moat PepsiCo by a low-single-digit percentage on lower 2025 earnings. Shares remain undervalued as the market prices in pessimistic assumptions for US food over the longer term.

  • We maintain our 10-year forecast calling for 4% annual sales growth, fueled by low- to mid-single-digit US sales growth, and mid-single-digit expansion in international business.
  • We also forecast adjusted operating margins to expand by 220 basis points over the next 10 years to reach 16.3% by 2034, as efficiency gains and cost-saving initiatives bear fruit.

Coming up: Regarding the US Food and Drug Administration’s plan to phase out certain artificial food coloring by 2026, we see PepsiCo as well-prepared for the transition.

  • The firm confirmed over 60% of its food products in the US today contain no chemical dyes. The percentage will likely go up significantly, as Lay’s and Tostitos aim to shift completely out of artificial colorings by the end of 2025.

Stryker

  • Number of best fund managers selling the stock: 5
  • Morningstar Price/Fair Value: 1.27
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Style Box: Large Core
  • Sector: Healthcare

Wide-moat Stryker is the third and final healthcare name on the list of stocks that the best fund managers have been selling. Stryker stock is overpriced, trading 27% above our $306 fair value estimate.

Morningstar’s Wang noted this after the company reported earnings earlier this month.

Once again, Stryker delivered quarterly results that outpaced market growth, with revenue up 14% in constant currency and adjusted operating margin at 23%.

Why it matters: Stryker’s level of innovation and operational excellence has consistently spurred the firm to deliver outsize growth, compared with medtech peers.

  • In the orthopedic business, the Mako robot has been a key factor in making Stryker into a dominating force, not only for large joints, but also increasingly for extremities and spine.
  • Even outside of orthopedics, Stryker’s ability to introduce relevant product improvements has resulted in double-digit growth in instruments, endoscopy, and the medical categories.

The bottom line: Considering the wide-moat firm is on track to meet our full-year projections, and our estimates remain bounded by management’s outlook, we’re maintaining our $306 fair value estimate.

  • Management indicated that the impact of tariffs for the full year would be in the neighborhood of $200 million, which would be offset by the firm’s higher sales growth.
  • However, we’re mindful that tariffs are likely to deliver a larger punch next year and have tempered our expectations for margin improvement through the midterm.

Coming up: Having recently closed on its acquisition of Inari Medical, Stryker has now entered the peripheral vascular market—with technology related to its platform and experience in neurovascular, but below the neck.

  • There has been increasing interest in using mechanical thrombectomy as another option to treat deep vein thrombosis and pulmonary embolism.

NXP Semiconductors

  • Number of best fund managers selling the stock: 2
  • Morningstar Price/Fair Value: 0.75
  • Morningstar Economic Moat Rating: Wide
  • Morningstar Uncertainty Rating: High
  • Morningstar Style Box: Large Core
  • Sector: Technology

NXP Semiconductors rounds out our list of stocks the best managers have been selling. We think the stock of this wide-moat company is worth $280, and its shares are trading well below that.

Morningstar strategist Brian Colello published this note after NXP reported earnings in April.

NXP Semiconductors reported first-quarter revenue down 9% year over year but in line with guidance. Second-quarter revenue should rise 2% sequentially and be modestly above FactSet consensus estimates. The company will also undergo a CEO transition in 2025.

Why it matters: Like its peers, NXP is guiding for sequential growth in the June quarter despite tariff risks, although the company provided no hints into revenue trends later this year. Absent tariffs, we think NXP is poised to benefit from inventory replenishment.

  • Automotive revenue fell 7% year over year in the first quarter, slightly below management’s expectations, but NXP saw signs of stabilization and some rush orders that suggest that the recent downcycle might be turning around.
  • Industrial and Internet of Things revenue fell 11% year over year, with weakness in core industrial. Mobile and other revenue both fared better than guidance.

The bottom line: We reduce our fair value estimate for wide-moat NXP to $280 per share from $300 as we made modestly lower near-term automotive and industrial revenue projections due to tariffs. Still, we think NXP’s long-term auto opportunities are being overly discounted amid tariff uncertainty.

  • We also raise our fair value Uncertainty Rating to High from Medium due to tariff uncertainty.
  • Admittedly, NXP will likely face indirect tariff headwinds from the auto market, but for those investors seeking exposure in the event of a hefty tariff reversal, NXP offers an attractive margin of safety, in our view.

Coming up: June revenue should benefit from inventory replenishment while we’re encouraged by some of NXP’s “green shoots” such as early signs of rush orders and an increase in order backlog. Since these items won’t be fulfilled immediately, NXP does not think these are signs of tariffs pulling in.

  • The CEO transition is a bit surprising to us, but incoming CEO and current VP Rafael Sotomayor will have a six-month transition with outgoing CEO Kurt Sievers.

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.