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Do you like to invest with a stock's momentum trends? With this idea in mind, we ran a screen.

We began by screening for stocks trading under $5 a share that have outperformed the market over the last quarter, with quarterly performance above 10%.

We then screened for those stocks also on winning streaks, measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

(click to enlarge)

Tool provided by Kapitall.

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

List sorted by win streak/lose streak ratio.

1. PGT, Inc. (NASDAQ:PGTI): Engages in the manufacture and sale of windows and doors. Market cap at $133.64M, most recent closing price at $2.49. Performance over the last quarter at 50.91%. The stock's average daily alpha vs. the S&P 500 index stands at 1.35% (measured close to close, over the last month). During this period, the longest winning streak lasted 9 days (i.e. the stock's daily returns outperformed the S&P 500 for 9 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 4.5).

2. Dyax Corp. (NASDAQ:DYAX): Engages in the discovery, development, and commercialization of novel biotherapeutics for unmet medical needs in the United States. Market cap at $177.84M, most recent closing price at $1.80. Performance over the last quarter at 29.50%. The stock's average daily alpha vs. the S&P 500 index stands at 1.14% (measured close to close, over the last month). During this period, the longest winning streak lasted 8 days (i.e. the stock's daily returns outperformed the S&P 500 for 8 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 4).

3. AuthenTec, Inc. (NASDAQ:AUTH): Provides security, identity management, and touch control technologies for PC, wireless device, and information technology markets primarily in the Asia Pacific, Japan, the United States, Canada, and Europe. Market cap at $188.28M, most recent closing price at $4.23. Performance over the last quarter at 23.32%. The stock's average daily alpha vs. the S&P 500 index stands at 2% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

*Price data sourced from Yahoo! Finance, 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 Outperforming Micro Caps Under $5 On Winning Streaks