US stock market investors have seen a 9% increase in stocks this year, with US stocks currently considered fairly valued by Morningstar. The “smart money” has been selling top stocks in the market, with 28 fund portfolios showing a decrease in stock holdings over the past few months. Stocks like Microsoft, Amazon, Apple, Visa, and others have been scaled back by top fund managers.

Microsoft, a top holding among investors, saw 14 managers selling the stock, despite strong earnings. Revenue increased by 18% in the fourth quarter, with Azure driving growth. Morningstar raises the fair value estimate to $600 per share, calling it a top pick for investors.

Amazon reported strong second-quarter results, with revenue growth of 12% and an increase in operating margin. The stock is considered slightly undervalued by Morningstar, with a fair value estimate of $245 per share. Amazon’s investments in AI and cloud services are expected to drive future growth.

Apple’s June-quarter results exceeded guidance, with revenue up 10% year over year. Services revenue also saw an increase. Morningstar raises the fair value estimate to $210 per share, despite some concerns about AI software improvements. Apple remains a top holding among investors.

Visa delivered a strong fiscal third quarter, with 14% net revenue growth. The stock trades at a 14% premium to the fair value estimate of $306. Consumer spending remains strong, but uncertainty around tariffs and regulatory scrutiny pose risks.

Goldman Sachs reported strong second-quarter earnings, with growth in investment banking and trading. The stock is considered overvalued, trading 30% above the fair value estimate of $570. Goldman remains a top player in investment banking, with room for growth.

UnitedHealth Group is the only healthcare stock on the list of sells by best fund managers. The stock is considered 24% overvalued, with a fair value estimate of $400. Despite challenges in the healthcare sector, UnitedHealth remains a top-tier managed care organization.

Home Depot, a widely held stock, saw sales growth in the second quarter. The stock is considered overvalued, trading 22% above the fair value estimate of $335. Economic uncertainty and interest rates pose challenges for Home Depot’s future growth.

Alphabet reported solid second-quarter earnings, with revenue up 14%. The stock is considered undervalued, trading 12% below the fair value estimate of $237. Alphabet’s AI initiatives and search growth contribute to its competitive positioning.

Caterpillar saw weaker earnings in construction and mining, offset by growth in power solutions. The stock is undervalued, trading 9% below the fair value estimate of $477. Tariffs continue to impact Caterpillar’s performance, but management remains confident in future growth.

Sherwin-Williams reported a 1% increase in net sales, with softening demand across its portfolio. The stock is considered overvalued, trading 42% above the fair value estimate of $258. Economic uncertainty and weaker demand pose challenges for Sherwin-Williams’ future growth.

Read more at Morningstar: 10 Stocks the Best US Fund Managers Have Been Selling in 2025