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Do you follow the trends of insiders and money managers? If so, here are some ideas to get you started.

We screened for stocks with the confidence of their company insiders, such as members of the board and upper management, with significant net insider purchases over the last six months representing at least 2% of share float. Since most companies only have a handful of company insiders, net insider purchases representing 2% of share float is a big show of confidence in their employer's prospects.

We then looked for stocks showing signs of outperforming the market. To do this we screened for stocks on winning streaks, 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.

Finally, we 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.

We were left with 3 companies on our list.

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

A Closer Look

We looked at Office Depot, Inc. (NYSE:ODP) in more detail. We find the Office Depot story interesting in an environment where online-retailers are becoming more popular by the day. While many retailers such as Staples (NASDAQ:SPLS), Best-Buy (NYSE:BBY), and RadioShack (NYSE:RSH) close stores to improve margins, and their balance sheets, Office Depot is exploring newly designed stores such as the new Bluwire store. This store allows customers to engage with the most advanced tech and mobile products. Customers are also able to order products to be shipped for free.

Office Depot stock has shown upside momentum since Starboard announced a significant stake in the company. Today the company is under pressure to reduce costs, improve margins, and restructure its real estate in order to survive in an online-retailer space. Can Office Depot make it? Insiders and money managers have shown their confidence. Are you ready to invest?

The List

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

1. Basic Energy Services, Inc. (NYSE:BAS): Provides a range of well site services to oil and gas drilling and producing companies in the United States.

  • Market cap at $590.8M, most recent closing price at $14.04.
  • Net institutional purchases in the current quarter at 2.6M shares, which represents about 6.99% of the company's float of 37.21M shares. The 2 top holders of the stock are Credit Suisse, and BlackRock Advisors.
  • Over the last six months, insiders were net buyers of 389,570 shares, which represents about 1.05% of the company's 37.21M share float. The 2 top holders of the stock are Credit Suisee, and Steven Wedster.
  • The stock's average daily alpha vs. the S&P500 index stands at 0.81% (measured close to close, over the last month). During this period, the longest winning streak lasted 6 days (i.e. the stock's daily returns outperformed the S&P 500 for 6 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.).

2. Office Depot, Inc. : Supplies office products and services.

  • Market cap at $1.26B, most recent closing price at $4.40.
  • Net institutional purchases in the current quarter at 18.9M shares, which represents about 8.04% of the company's float of 235.07M shares. The 2 top holders of the stock are Starboard Value, and The Vanguard Group.
  • Over the last six months, insiders were net buyers of 6,916,980 shares, which represents about 2.94% of the company's 235.07M share float. The 2 top holders of the stock are Starboard Value, and Neil Austrian.
  • The stock's average daily alpha vs. the S&P500 index stands at 0.93% (measured close to close, over the last month). During this period, the longest winning streak lasted 6 days (i.e. the stock's daily returns outperformed the S&P 500 for 6 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.).

3. Tenet Healthcare Corp. (NYSE:THC): Operates acute care hospitals and related health care facilities.

  • Market cap at $4.21B, most recent closing price at $39.56.
  • Net institutional purchases in the current quarter at 6.5M shares, which represents about 7.22% of the company's float of 90.03M shares. The 2 top holders of the stock are Glenview Capital Management, and Harris Associates.
  • Over the last six months, insiders were net buyers of 3,000,000 shares, which represents about 3.33% of the company's 90.03M share float. The 2 top holders of the stock are Glenview Capital Management, and Trevor Fetter.
  • The stock's average daily alpha vs. the S&P500 index stands at 0.78% (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).

*Institutional data sourced from Fidelity, Insider data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: Hedge Funds And Insiders Are Buying These 3 Stocks On Winning Streaks