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

Do you prefer investing with a stock's momentum trends? For ideas on how to screen for stocks with positive momentum, we ran a screen.

We began by screening for stocks trading under $5 that are currently rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

We then 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.

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

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

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Synergy Resources Corporation (NYSEMKT:SYRG): Engages in the acquisition, exploitation, exploration, development, and production of oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. Market cap at $179.54M, most recent closing price at $3.51. The stock is currently trading 1.40% above its 20-day moving average, 0.76% above its 50-day MA, and 8.20% above its 200-day MA. Net institutional purchases in the current quarter at 7.0M shares, which represents about 17.51% of the company's float of 39.97M shares.

2. EnteroMedics, Inc. (NASDAQ:ETRM): Focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. Market cap at $108.14M, most recent closing price at $2.77. The stock is currently trading 3.15% above its 20-day moving average, 15.46% above its 50-day MA, and 31.54% above its 200-day MA. Net institutional purchases in the current quarter at 1.8M shares, which represents about 13.06% of the company's float of 13.78M shares.

3. Glu Mobile, Inc. (NASDAQ:GLUU): Engages in the design, marketing, and sale of casual and traditional mobile games worldwide. Market cap at $286.38M, most recent closing price at $4.44. The stock is currently trading 0.10% above its 20-day moving average, 0.15% above its 50-day MA, and 23.54% above its 200-day MA. Net institutional purchases in the current quarter at 4.7M shares, which represents about 9.1% of the company's float of 51.67M shares.

*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: 3 Rallying Stocks Under $5 Being Bought Up By Hedge Funds