Do you consider yourself a value investor, always searching for potentially undervalued names? For ideas on how to start your own value search, we ran a screen.
We began by screening for stocks with high growth projections, with 5-year projected EPS growth rates above 15% that are also trading between $1 and $5 a share.
Then we screened for bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers, which often have more sophisticated market data on hand than main street investors, expect these names to outperform.
Do you think these stocks will soon price in more value? Use this list as a starting point for your own analysis.
1. The Active Network, Inc. (ACTV): Offers application services technology and marketing access to community service and participatory sports organizations. Market cap at $304.67M, most recent closing price at $5.03. 5-year projected EPS growth at 27.5%. Net institutional purchases in the current quarter at 6.2M shares, which represents about 13.41% of the company's float of 46.25M shares.
2. Extreme Networks Inc. (EXTR): Provides network infrastructure equipment and services to businesses, hospitals, schools, hotels, telecommunications companies, and government agencies worldwide. Market cap at $332.68M, most recent closing price at $3.50. 5-year projected EPS growth at 20%. Net institutional purchases in the current quarter at 7.2M shares, which represents about 10.4% of the company's float of 69.24M shares.
*Institutional data sourced from Fidelity, all other data sourced from Finviz.