Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

Do you think there is enough positive sentiment in the U.S. economy to promote consumer spending? If so, you may be intrigued by this stock list.

To create the list below we began by screening the consumer goods sector for stocks that have outperformed the market over the last quarter, with quarterly performance well above 10% and even stronger performance in the last 30 days.

To see if any of these names might have more upside we searched the 13F's for 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 then collected data on insider buying, and identified the names that have seen bullishness from company executives, with net insider purchases representing at least 1.5% of share float. This left us with 3 companies on our list.

The List

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

Do you agree with insiders and fund managers? Use this list as a starting point for your own analysis.

1. Navistar International Corporation (NAV): Manufactures and sells commercial and military trucks, buses, diesel engines, recreational vehicles (RVs), and chassis, as well as provides service parts for trucks and trailers.

  • Market cap at $2.78B, most recent closing price at $34.54.
  • Net institutional purchases in the current quarter at 15.4M shares, which represents about 29.82% of the company's float of 51.64M shares. The 2 top holders of the stock are Franklin Resources, and MHR Fund Management.
  • Over the last six months, insiders were net buyers of 3,353,100 shares, which represents about 6.49% of the company's 51.64M share float. The 2 top holders of the stock are Carl Icahn, and Mark Rachesky.
  • Performance over last quarter at 70%. Additionally, the stock has outperformed over the past month when compared to its closest competitors. The stock returned 39.44% since 2/25/13, better than Hyster-Yale Materials Handling, Inc. (HY) and Oshkosh Corporation (OSK), which returned 12.94% and 8.66% during the same holding period.

2. Tempur Pedic International Inc. (TPX): Distributes bedding products worldwide.

  • Market cap at $2.77B, most recent closing price at $46.81.
  • Net institutional purchases in the current quarter at 7.0M shares, which represents about 14.69% of the company's float of 47.66M shares. The 2 top holders of the stock are Chieftain Capital Management, and FMR, LLC.
  • Over the last six months, insiders were net buyers of 590,915 shares, which represents about 1.49% of the company's 39.65M share float. The 2 top holders of the stock are Chieftain Capital Management, and David Montgomery.
  • Performance over last quarter at 52%. Like Navistar, the stock has outperformed over the past month when compared to its closest competitors. The stock returned 26.51% since 2/25/13, better than Mattress Firm Holding Corp. (MFRM) and Leggett & Platt, Incorporated (LEG), which returned 17.50% and 14.66% during the same holding period.

3. Wausau Paper Corp. (WPP): Manufactures, converts, and sells paper and paper products in the United States and internationally.

  • Market cap at $540M, most recent closing price at $10.94.
  • Net institutional purchases in the current quarter at 2.2M shares, which represents about 5.42% of the company's float of 40.57M shares. The 2 top holders of the stock are Starboard Value, L.P., and Wilmington Trust Co.
  • Over the last six months, insiders were net buyers of 1,875,780 shares, which represents about 4.62% of the company's 40.57M share float. The 2 top holders of the stock are Starboard Value, and Thomas Howatt.
  • Performance over last quarter at 26%. Just like the other stocks in this list, WPP has outperformed over the past month when compared to its closest competitors. The stock returned 10.39% since 2/25/13, better than International Paper Co. (IP) and Domtar Corporation (UFS), which returned 9.52% and 5.36% during the same holding period.

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

Source: Hedge Funds And Insiders Are Buying These 3 Outperforming Consumer Stocks