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Do you like to follow smart money buying trends? For a closer look at stocks currently favored by smart money institutional investors, we ran a screen.

We began by screening the consumer goods sector 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. Smithfield Foods Inc. (NYSE:SFD): Engages in the production and marketing of fresh meat and packaged meat products in the United States and internationally. Market cap at $3.25B, most recent closing price at $20.20. PEG at 0.98. Net institutional purchases in the current quarter at 16.1M shares, which represents about 11.07% of the company's float of 145.44M shares.

2. VeriFone Systems, Inc (NYSE:PAY): Designs, markets, and services electronic payment solutions that enable secure electronic payments among consumers, merchants, and financial institutions worldwide. Market cap at $4.7B, most recent closing price at $43.70. PEG at 0.76. Net institutional purchases in the current quarter at 10.5M shares, which represents about 10% of the company's float of 104.98M shares.

3. BorgWarner Inc. (NYSE:BWA): Engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide. Market cap at $8.4B, most recent closing price at $73.30. PEG at 0.65. Net institutional purchases in the current quarter at 9.1M shares, which represents about 8.04% of the company's float of 113.14M shares.

4. China XD Plastics Company Ltd. (NASDAQ:CXDC): Through its subsidiary, Harbin Xinda Macromolecule Material Co. Market cap at $234.32M, most recent closing price at $4.93. PEG at 0.2. Net institutional purchases in the current quarter at 1.2M shares, which represents about 8.04% of the company's float of 14.93M shares.

5. Deckers Outdoor Corp. (NYSE:DECK): Engages in the design, production, marketing, and brand management of footwear and accessories for outdoor activities and everyday casual lifestyle use. Market cap at $2.05B, most recent closing price at $53.22. PEG at 0.61. Net institutional purchases in the current quarter at 2.9M shares, which represents about 7.72% of the company's float of 37.55M shares.

6. SodaStream International Ltd. (NASDAQ:SODA): Engages in the development, manufacture, and marketing of home beverage carbonation systems and related products. Market cap at $624.74M, most recent closing price at $31.02. PEG at 0.64. Net institutional purchases in the current quarter at 987.2K shares, which represents about 6.56% of the company's float of 15.04M shares.

7. WABCO Holdings Inc. (NYSE:WBC): Develops, manufactures, and sells braking, stability, suspension, and transmission control systems primarily for commercial vehicles. Market cap at $3.3B, most recent closing price at $51.15. PEG at 0.66. Net institutional purchases in the current quarter at 3.9M shares, which represents about 6.49% of the company's float of 60.06M shares.

8. American Axle & Manufacturing Holdings Inc. (AXL): Engages in the manufacture, engineering, design, and validation of driveline and drivetrain systems, and related components and chassis modules for automotive industry in the United States. Market cap at $628.66M, most recent closing price at $8.40. PEG at 0.3. Net institutional purchases in the current quarter at 3.6M shares, which represents about 5.83% of the company's float of 61.73M shares.

9. Dana Holding Corporation (DAN): Engages in the design, manufacture, and supply of products for vehicle manufacturers worldwide. Market cap at $1.83B, most recent closing price at $12.36. PEG at 0.26. Net institutional purchases in the current quarter at 8.3M shares, which represents about 5.65% of the company's float of 146.90M shares.

10. Helen of Troy Limited (HELE): Engages in the design, development, import, and distribution of brand-name consumer products worldwide. Market cap at $1.02B, most recent closing price at $32.16. PEG at 0.92. Net institutional purchases in the current quarter at 1.6M shares, which represents about 5.47% of the company's float of 29.24M shares.

11. LeapFrog Enterprises Inc. (LF): Provides technology-based learning platforms worldwide. Market cap at $642.71M, most recent closing price at $9.63. PEG at 0.98. Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.12% of the company's float of 52.70M shares.

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

Source: Hedge Funds Love These 11 Undervalued Consumer Goods Stocks