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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 industrial 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.

1. Beazer Homes USA Inc. (NYSE:BZH): Designs, builds, and sells single-family and multi-family homes in the United States. Market cap at $455.55M, most recent closing price at $18.31. 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 6% above its 20-day moving average, 17% above its 50-day moving average, and 23% above its 200-day moving average. The top 2 holders of the stock are Columbus Circle Investors and Appaloosa Management, L.P.

2. Colfax Corporation (NYSE:CFX): Designs, manufactures, and distributes fluid handling products that transfer or control liquids in various applications worldwide. Market cap at $3.86B, most recent closing price at $41.10. 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 5% above its 20-day moving average, 9% above its 50-day moving average, and 26% above its 200-day moving average. The top 2 holders of the stock are BDT Capital Partners and Blue Ridge Capital.

3. Eaton Corporation (NYSE:ETN): Operates as a power management company worldwide. Market cap at $26.32B, most recent closing price at $56.56. Net institutional purchases in the current quarter at 16.7M shares, which represents about 5.03% of the company's float of 331.68M shares. The stock is currently trading 3.41% above its 20-day moving average, 8% above its 50-day moving average, and 24% above its 200-day moving average. The top 2 holders of the stock are Wellington Management and Capital World Investors.

4. Eagle Materials Inc. (NYSE:EXP): Distributes and sells gypsum wallboard, Portland cement, recycled paperboard, and concrete and aggregates. Market cap at $3.15B, most recent closing price at $64.41. Net institutional purchases in the current quarter at 2.5M shares, which represents about 5.52% of the company's float of 45.31M shares. The stock is currently trading 5% above its 20-day moving average, 14% above its 50-day moving average, and 49% above its 200-day moving average. The top 2 holders of the stock are Blackrock Fund Advisors and the Vanguard Group.

5. 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 $718.62M, most recent closing price at $10.10. Net institutional purchases in the current quarter at 4.2M shares, which represents about 7.07% of the company's float of 59.44M shares. The stock is currently trading 12% above its 20-day moving average, 28% above its 50-day moving average, and 63% above its 200-day moving average. The top 2 holders of the stock are Prudential Plc and T. Rowe Price.

6. McDermott International Inc. (NYSE:MDR): Operates as an engineering, procurement, construction, and installation company worldwide. Market cap at $2.91B, most recent closing price at $12.36. Net institutional purchases in the current quarter at 15.0M shares, which represents about 6.41% of the company's float of 234.16M shares. The stock is currently trading 7% above its 20-day moving average, 14% above its 50-day moving average, and 12% above its 200-day moving average. The top 2 holders of the stock are T. Rowe Price and FMR, LLC.

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

Source: 6 Rallying Industrial Stocks Being Snapped Up By Hedge Funds