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This list might be an interesting starting point to momentum investors. To create these ideas, we started with a universe of companies that have raised EPS guidance above analyst estimates over the past month.

We then narrowed down the list, and focused on those stocks that are in rally mode (more than 10% above their 20-day MA, 50-day MA, and 200-day MA).

Finally, we collected data on institutional flows, and identified three stocks with significant institutional buying over the last three months.

With institutional flows already chasing these names, is there still potential for some upside? What do you think?

Institutional data sourced from Reuters, short float and performance data sourced from Finviz, earnings guidance from Briefing.com.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


The list has been sorted by the change in institutional ownership over the last three months.

1. Oplink Communications Inc. (NASDAQ:OPLK):
Semiconductor Industry. Market cap of $473.16M.

Moving Average Trends: The stock is 20.42% above its 20-day MA, 28.90% above its 50-day MA, and 45.48% above its 200-day MA.

Guidance: Guided Q3 at $0.49-0.55 vs. estimate of $0.38.

Institutional Transactions: Institutional investors currently own 17,443,927 vs. 16,683,054 shares held three months ago (4.56% change).

Other Sentiment Data: Short float at 3.41%, which implies a short ratio of 3.25 days. The stock has gained 63.45% over the last year.

2. Teradyne Inc. (NYSE:TER):
Semiconductor Equipment & Materials Industry. Market cap of $3.08B.

Moving Average Trends: The stock is 18.97% above its 20-day MA, 24.70% above its 50-day MA, and 48.92% above its 200-day MA.

Guidance: Guided Q1 at $0.33-0.39 vs. estimate of $0.19.

Institutional Transactions: Institutional investors currently own 202,998,902 vs. 197,442,388 shares held three months ago (2.81% change).

Other Sentiment Data: Short float at 11.02%, which implies a short ratio of 3.41 days. The stock has gained 73.47% over the last year.

Recent Developments: Announced $200M stock repurchase program (Nov. 2010).

3. ICU Medical, Inc. (NASDAQ:ICUI):
Medical Instruments & Supplies Industry. Market cap of $585.05M.

Moving Average Trends: The stock is 15.18% above its 20-day MA, 16.26% above its 50-day MA, and 20.79% above its 200-day MA.

Guidance: Guided FY11 at $2.25-2.45 vs. estimate of $2.22.

Institutional Transactions: Institutional investors currently own 12,690,106 vs. 12,517,892 shares held three months ago (1.38% change).

Other Sentiment Data: Short float at 12.73%, which implies a short ratio of 20.82 days. The stock has gained 32.06% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 3 Rallying Stocks Raising Guidance See Institutional Buying