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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.

Source: 18 High-Growth Smart Money Picks Trading Under $5