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There's a certain thrill that comes with trading penny stocks. But to avoid the inherent dangers, many investors interested in winning nominally small but high percentage returns turn to larger companies that are still offered at lower prices.

Here, we screen a universe of stocks that are trading between $1-$5 with market caps above $300 million. Then, to find names showing upside momentum, we screened for stocks on "winning streaks."

For our purposes, a winning streak is measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will continue to win? Use this list as a starting point for your own analysis.

1. Alcatel-Lucent, S.A. (ALU): Provides products, solutions, and transformation services that enable service providers, enterprises, governments, and strategic industries to deliver voice, data, and video communication services to end-users worldwide. Market cap at $3.4B, most recent closing price at $1.58. The stock's average daily alpha vs. the S&P 500 index stands at 1.04% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

2. Ferro Corp. (FOE): Engages in the production of specialty materials and chemicals for a range of manufacturers worldwide. Market cap at $389.43M, most recent closing price at $4.52. The stock's average daily alpha vs. the S&P 500 index stands at 2.06% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.5).

3. Oncolytics Biotech Inc. (ONCY): Focuses on the development of oncolytic viruses as potential cancer therapeutics. Market cap at $300.62M, most recent closing price at $3.76. The stock's average daily alpha vs. the S&P 500 index stands at 3.3% (measured close to close, over the last month). During this period, the longest winning streak lasted 9 days (i.e. the stock's daily returns outperformed the S&P 500 for 9 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 4.5).

4. Rite Aid Corp. (RAD): Operates retail drugstores in the United States. Market cap at $1.25B, most recent closing price at $1.38. The stock's average daily alpha vs. the S&P 500 index stands at 1.59% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

5. Suntech Power Holdings Co. Ltd. (STP): Engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. Market cap at $329.71M, most recent closing price at $1.84. The stock's average daily alpha vs. the S&P 500 index stands at 3.74% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.5).

Source: 5 Stocks Under $5 On Winning Streaks