Do you like to follow smart money buying and selling trends? We ran a screen with this idea in mind. We began by screening the utility sector for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.
We then screened for those with 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 expect these names to outperform into the future.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.
1. Atlas Energy, L.P (NYSE:ATLS): Engages in the gathering and processing of natural gas in the Mid-Continent and Appalachia regions. Market cap at $1.72B, most recent closing price at $34.25. Net institutional purchases in the current quarter at 4.8M shares, which represents about 10.25% of the company's float of 46.83M shares. 5-year projected EPS growth rate at 26%.
2. NRG Energy, Inc. (NYSE:NRG): Operates as a wholesale power generation company. Market cap at $4.56B, most recent closing price at $20.13. Net institutional purchases in the current quarter at 15.1M shares, which represents about 6.65% of the company's float of 227.12M shares. 5-year projected EPS growth rate at 28.33%.
*Institutional data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.