18 High-Growth Smart Money Picks Trading Under $5

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 |  Includes: ACPW, AFFY, AONEQ, ATV, CIS, CNTF, EGHT, EOX, EVLV, GLUU, HBIO, KERX, LCI, NSPH, PLXT, POWR, VRX, WWIN
by: Kapitall

Analysts follow the buying trends of institutional investors such as hedge fund managers and mutual fund managers (a.k.a. the “smart money”) because they have access to sophisticated research and have a great deal of information on the companies they trade.

We ran a screen on stocks under $5 with 5-year projected EPS growth above 20% for those seeing significant net institutional buying over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.



Do you agree with the smart money on these names? Use this list as a starting-off point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Camelot Information Systems Inc. (NYSE:CIS): Provides enterprise application services and financial industry information technology (NYSE:IT) services in the People's Republic of China. Market cap of $225.85M. Projected 5-year EPS growth at 24.62%. Price at $4.90. Net institutional shares purchased over the current quarter at 10.4M, which is 37.91% of the company's 27.43M share float. The stock is a short squeeze candidate, with a short float at 18.86% (equivalent to 7.48 days of average volume).

2. ISTA Pharmaceuticals Inc. (ISTA):
Develops, and markets remedies for diseases and conditions of the eye in the United States. Market cap of $169.95M. Projected 5-year EPS growth at 25.00%. Price at $3.94. Net institutional shares purchased over the current quarter at 10.7M, which is 31.94% of the company's 33.50M share float.

3. Glu Mobile, Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap of $207.80M. Projected 5-year EPS growth at 33.75%. Price at $3.27. Net institutional shares purchased over the current quarter at 7.9M, which is 17.60% of the company's 44.88M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has gained 193.75% over the last year.

4. Voyager Oil & Gas, Inc. (VOG):
Engages in the exploration and production of oil and gas in the United States. Market cap of $149.83M. Projected 5-year EPS growth at 35.00%. Price at $2.55. Net institutional shares purchased over the current quarter at 7.0M, which is 16.25% of the company's 43.08M share float. The stock is a short squeeze candidate, with a short float at 8.8% (equivalent to 8.75 days of average volume). It's been a rough couple of days for the stock, losing 7.83% over the last week.

5. Acorn International, Inc. (NYSE:ATV):
Operates TV direct sales businesses and a nationwide off-TV distribution network. Market cap of $125.63M. Projected 5-year EPS growth at 50.00%. Price at $4.35. Net institutional shares purchased over the current quarter at 721.8K, which is 15.76% of the company's 4.58M share float. The stock has gained 11.94% over the last year.

6. Nanosphere, Inc. (NASDAQ:NSPH): Develops, manufactures, and markets a molecular diagnostics platform, the Verigene System that enables genomic and protein testing on a single platform. Market cap of $58.68M. Projected 5-year EPS growth at 25.00%. Price at $1.29. Net institutional shares purchased over the current quarter at 5.2M, which is 15.73% of the company's 33.05M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.14).

7. A123 Systems, Inc. (AONE):
Engages in the design, development, manufacture, and sale of rechargeable lithium-ion batteries and battery systems primarily in the United States. Market cap of $623.85M. Projected 5-year EPS growth at 35.00%. Price at $4.84. Net institutional shares purchased over the current quarter at 13.5M, which is 14.22% of the company's 94.97M share float. The stock is a short squeeze candidate, with a short float at 17.55% (equivalent to 6.69 days of average volume). The stock has had a good month, gaining 65.55%.

8. Winner Medical Group Inc. (NASDAQ:WWIN):
Engages in the research, development, manufacture, and marketing of cotton-base medical dressings and medical disposables. Market cap of $85.70M. Projected 5-year EPS growth at 25.50%. Price at $3.50. Net institutional shares purchased over the current quarter at 746.6K, which is 12.94% of the company's 5.77M share float. The stock has performed poorly over the last month, losing 21.11%.

9. China Techfaith Wireless Communication Technology Limited (NASDAQ:CNTF):
Operates as an original developed products provider that is focused on the original design and sale of mobile phones in the People's Republic of China and internationally. Market cap of $127.03M. Projected 5-year EPS growth at 25.00%. Price at $2.48. Net institutional shares purchased over the current quarter at 2.6M, which is 10.62% of the company's 24.49M share float.

10. PLX Technology Inc. (NASDAQ:PLXT):
Designs, develops, manufactures, and sells integrated circuits. Market cap of $138.52M. Projected 5-year EPS growth at 25.00%. Price at $3.11. Net institutional shares purchased over the current quarter at 2.8M, which is 10.25% of the company's 27.31M share float. The stock is a short squeeze candidate, with a short float at 5.79% (equivalent to 13.16 days of average volume). It's been a rough couple of days for the stock, losing 5.47% over the last week.

11. Keryx Biopharmaceuticals Inc. (NASDAQ:KERX): Focuses on the acquisition, development, and commercialization of pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease. Market cap of $282.29M. Projected 5-year EPS growth at 30.00%. Price at $4.07. Net institutional shares purchased over the current quarter at 6.7M, which is 9.78% of the company's 68.48M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.35). The stock is a short squeeze candidate, with a short float at 14.69% (equivalent to 8.56 days of average volume).

12. 8x8 Inc. (NASDAQ:EGHT): Develops and markets telecommunications services for Internet protocol (NYSE:IP), telephony, and video applications, as well as provides Web-based conferencing and unified communications services. Market cap of $278.97M. Projected 5-year EPS growth at 27.50%. Price at $4.51. Net institutional shares purchased over the current quarter at 5.0M, which is 9.57% of the company's 52.27M share float. The stock has had a good month, gaining 45.28%.

13. ValueVision Media Inc. (VVTV): Engages in marketing, selling, and distributing products to consumers through televisions (TVs), telephone, online, mobile, and social media. Market cap of $177.90M. Projected 5-year EPS growth at 25.00%. Price at $3.65. Net institutional shares purchased over the current quarter at 2.6M, which is 8.36% of the company's 31.11M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 3.). It's been a rough couple of days for the stock, losing 6.09% over the last week.

14. PowerSecure International, Inc. (NYSE:POWR): Provides energy technology products, services, and data management systems to industrial and commercial users, and suppliers of natural gas and electricity. Market cap of $83.28M. Projected 5-year EPS growth at 27.50%. Price at $4.22. Net institutional shares purchased over the current quarter at 1.2M, which is 7.80% of the company's 15.38M share float. The stock is a short squeeze candidate, with a short float at 11.45% (equivalent to 19.82 days of average volume). The stock has lost 50.06% over the last year.

15. Harvard Bioscience Inc. (NASDAQ:HBIO): Develops, manufactures, and markets apparatus and scientific instruments used in life science research in pharmaceutical and biotechnology companies, universities, and government laboratories in the United States and internationally. Market cap of $126.50M. Projected 5-year EPS growth at 25.00%. Price at $4.22. Net institutional shares purchased over the current quarter at 1.6M, which is 7.80% of the company's 20.52M share float. The stock has gained 29.07% over the last year.

16. Active Power Inc. (NASDAQ:ACPW):
Designs, manufactures, and markets critical power quality solutions. Market cap of $119.42M. Projected 5-year EPS growth at 25.00%. Price at $1.48. Net institutional shares purchased over the current quarter at 4.4M, which is 7.03% of the company's 62.59M share float. The stock has had a good month, gaining 16.41%.

17. Lannett Company, Inc. (NYSE:LCI): Develops, manufactures, packages, markets, and distributes generic pharmaceutical products sold under generic chemical names in the United States. Market cap of $114.13M. Projected 5-year EPS growth at 22.50%. Price at $4.00. Net institutional shares purchased over the current quarter at 722.4K, which is 5.94% of the company's 12.17M share float. The stock is a short squeeze candidate, with a short float at 5.94% (equivalent to 5.73 days of average volume). The stock has had a couple of great days, gaining 7.49% over the last week.

18. Affymax, Inc. (OTCPK:AFFY): Engages in the development of drugs for the treatment of serious and life-threatening conditions. Market cap of $162.82M. Projected 5-year EPS growth at 27.50%. Price at $4.52. Net institutional shares purchased over the current quarter at 1.7M, which is 5.54% of the company's 30.67M share float. The stock has lost 26.25% over the last year.

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


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