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Do you consider yourself a value investor, always looking for underestimated and potentially undervalued stocks? For ideas on how to start your own value search, we ran a screen.

We began by screening for stocks that appear to be undervalued relative to earnings growth, with PEG below 1.

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.

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Do you think hedge funds are calling it right on these names? 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. Almost Family Inc. (NASDAQ:AFAM): Provides home health services in the United States. Market cap at $197.77M, most recent closing price at $21.22. PEG at 0.99. Net institutional purchases in the current quarter at 416.4K shares, which represents about 5.05% of the company's float of 8.25M shares.

2. Akorn, Inc. (NASDAQ:AKRX): Engages in the manufacture and marketing of diagnostic and therapeutic pharmaceutical products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. Market cap at $1.23B, most recent closing price at $12.95. PEG at 0.66. Net institutional purchases in the current quarter at 10.3M shares, which represents about 14.69% of the company's float of 70.12M shares.

3. DUSA Pharmaceuticals Inc. (NASDAQ:DUSA): Develops and markets Levulan photodynamic therapy and other products for common skin conditions primarily in the United States, Canada, and Korea. Market cap at $128.89M, most recent closing price at $5.17. PEG at 0.74. Net institutional purchases in the current quarter at 1.2M shares, which represents about 5.98% of the company's float of 20.06M shares.

4. Neurocrine Biosciences Inc. (NASDAQ:NBIX): Engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. Market cap at $434.33M, most recent closing price at $6.55. PEG at 0.16. Net institutional purchases in the current quarter at 10.9M shares, which represents about 18.67% of the company's float of 58.38M shares.

5. Pernix Therapeutics Holdings, Inc. (NASDAQ:PTX): Engages in the development, marketing, and sale of branded and generic pharmaceutical products primarily for the pediatric market. Market cap at $207.85M, most recent closing price at $7.15. PEG at 0.48. Net institutional purchases in the current quarter at 631.9K shares, which represents about 13.11% of the company's float of 4.82M shares.

6. Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $2.43B, most recent closing price at $38.51. PEG at 0.63. Net institutional purchases in the current quarter at 10.7M shares, which represents about 17.94% of the company's float of 59.65M shares.

7. Sun Healthcare Group, Inc. (NASDAQ:SUNH): Provides health care services primarily for senior population in the United States. Market cap at $368.02M, most recent closing price at $4.92. PEG at 0.56. Net institutional purchases in the current quarter at 1.3M shares, which represents about 6.37% of the company's float of 20.42M shares.

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

Source: 7 Undervalued Healthcare Stocks Being Bought Up By Hedge Funds