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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 a look at 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? 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. 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 $1.06B, most recent closing price at $15.96. Net institutional purchases in the current quarter at 3.3M shares, which represents about 5.73% of the company's float of 57.59M shares. The stock is currently trading 4.98% above its 20-day moving average, 17.29% above its 50-day moving average, and 16.75% above its 200-day moving average. As of September 30th, 2012, the 2 top holders of the stock are Fidelity Management & Research (9.6%), and Ceredex Value Advisors (7.5%).

2. Carpenter Technology Corp. (NYSE:CRS): Engages in the manufacturing, fabrication, and distribution of specialty metals. Market cap at $2.74B, most recent closing price at $51.16. Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.74% of the company's float of 47.00M shares. The stock is currently trading 4.64% above its 20-day moving average, 4.65% above its 50-day moving average, and 4.37% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are Goldman Sachs (4.9%), and T. Rowe Price (4.6%).

3. Eagle Materials Inc. (NYSE:EXP): Distributes, and sells gypsum wallboard, Portland cement, recycled paperboard, and concrete and aggregates. Market cap at $2.87B, most recent closing price at $57.45. Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.96% of the company's float of 45.31M shares. The stock is currently trading 4.34% above its 20-day moving average, 8.15% above its 50-day moving average, and 39% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are BlackRock Fund Advisors (5.5%), and The Vanguard Group (5.5%).

4. Headwaters Inc. (NYSE: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 $478.73M, most recent closing price at $8.3. Net institutional purchases in the current quarter at 3.7M shares, which represents about 6.25% of the company's float of 59.24M shares. The stock is currently trading 10.5% above its 20-day moving average, 17.29% above its 50-day moving average, and 45.88% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are Prudential Plc (19%), and T. Rowe Price (9.5%)

5. Eaton Corporation (NYSE:ETN): Operates as a power management company worldwide. Market cap at $25.43B, most recent closing price at $53.47. Net institutional purchases in the current quarter at 20.9M shares, which represents about 6.3% of the company's float of 331.68M shares. The stock is currently trading 2.27% above its 20-day moving average, 7.68% above its 50-day moving average, and 17.95% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are Wellington Management, and Capital World Advisors.

6. Colfax Corporation (NYSE:CFX): Designs, manufactures, and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap at $3.75B, most recent closing price at $39.35. Net institutional purchases in the current quarter at 4.4M shares, which represents about 6.89% of the company's float of 63.84M shares. The stock is currently trading 0.79% above its 20-day moving average, 5.74% above its 50-day moving average, and 18.65% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are BDT Capital Partners (15.7%), and Blue Ridge Capital (5.7%).

7. Beazer Homes USA Inc. (NYSE:BZH): Designs, builds, and sells single-family and multi-family homes in the United States. Market cap at $408.87M, most recent closing price at $16.76. Net institutional purchases in the current quarter at 9.7M shares, which represents about 43.17% of the company's float of 22.47M shares. The stock is currently trading 11% above its 20-day moving average, 6.11% above its 50-day moving average, and 11% above its 200-day moving average. As of September 29th, 2012, the top 2 holders of the stock are Appaloosa Management (5.7%), and The Vanguard Group (5.3%).

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

Source: 7 Rallying Industrials Being Snapped Up By Hedge Funds