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Do you like to follow smart money buying trends? If so, you may be interested in a screen we ran for rallying stocks currently favored by smart money institutional investors.

We began by screening the Industrials sector for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

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 these stocks are poised to outperform? Do they have more upside to price in? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. M/I Homes, Inc. (MHO): Engages in the construction and sale of single-family residential properties. Market cap at $469.32M, most recent closing price at $21.89. Net institutional purchases in the current quarter at 3.8M shares, which represents about 18.33% of the company's float of 20.73M shares. The stock is currently trading 3.06% above its 20-day moving average, 4.13% above its 50-day moving average, and 35.63% above its 200-day moving average.

2. Sturm, Ruger & Co. Inc. (RGR): Engages in the design, manufacture, and sale of firearms in the United States. Market cap at $1.05B, most recent closing price at $55.01. Net institutional purchases in the current quarter at 1.8M shares, which represents about 9.72% of the company's float of 18.52M shares. The stock is currently trading 16.79% above its 20-day moving average, 19.14% above its 50-day moving average, and 27.11% above its 200-day moving average.

3. Smith & Wesson Holding Corporation (SWHC): Offers metal processing services and manufactures firearms and handcuffs as well as apparel and sportsmen's articles. Market cap at $646.48M, most recent closing price at $9.87. Net institutional purchases in the current quarter at 5.4M shares, which represents about 8.89% of the company's float of 60.72M shares. The stock is currently trading 4.75% above its 20-day moving average, 0.74% above its 50-day moving average, and 23.44% above its 200-day moving average.

4. Fushi Copperweld, Inc. (FSIN): Develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum and copper-clad steel. Market cap at $357.5M, most recent closing price at $9.31. Net institutional purchases in the current quarter at 1.8M shares, which represents about 8.6% of the company's float of 20.94M shares. The stock is currently trading 0.18% above its 20-day moving average, 1.16% above its 50-day moving average, and 13.90% above its 200-day moving average.

5. Interface Inc. (IFSIA): Engages in the design, production, and sale of modular and broadloom carpets, and other floor covering products for the commercial, institutional, and residential markets primarily in the Americas, Europe, and the Asia-Pacific. Market cap at $950.34M, most recent closing price at $14.41. Net institutional purchases in the current quarter at 3.4M shares, which represents about 7.23% of the company's float of 47.01M shares. The stock is currently trading 1.27% above its 20-day moving average, 3.08% above its 50-day moving average, and 9.46% above its 200-day moving average.

6. Colfax Corporation (CFX): Designs, manufactures, and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap at $3.54B, most recent closing price at $37.70. Net institutional purchases in the current quarter at 4.5M shares, which represents about 7.05% of the company's float of 63.84M shares. The stock is currently trading 6.04% above its 20-day moving average, 5.35% above its 50-day moving average, and 16.25% above its 200-day moving average.

7. Eaton Corporation (ETN): Operates as a power management company worldwide. Market cap at $17.29B, most recent closing price at $51.17. Net institutional purchases in the current quarter at 21.4M shares, which represents about 6.49% of the company's float of 329.68M shares. The stock is currently trading 4.85% above its 20-day moving average, 8.55% above its 50-day moving average, and 14.13% above its 200-day moving average.

8. Headwaters Inc. (HW): Provides products, technologies, and services in the building products, construction material, and energy industries primarily in the United States and Canada. Market cap at $449.38M, most recent closing price at $7.35. Net institutional purchases in the current quarter at 3.8M shares, which represents about 6.41% of the company's float of 59.24M shares. The stock is currently trading 8.96% above its 20-day moving average, 7.79% above its 50-day moving average, and 40.19% above its 200-day moving average

9. Eagle Materials Inc. (EXP): Distributes, and sells gypsum wallboard, Portland cement, recycled paperboard, and concrete and aggregates. Market cap at $2.73B, most recent closing price at $55.72. Net institutional purchases in the current quarter at 2.6M shares, which represents about 5.75% of the company's float of 45.22M shares. The stock is currently trading 4% above its 20-day moving average, 10.56% above its 50-day moving average, and 41.36% above its 200-day moving average.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 9 Rallying Industrial Stocks Being Snapped By Hedge Funds