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

We began by screening the basic materials sector for stocks that appear 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 into the future.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall.

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 as a percent of share float.

1. Rex Energy Corporation (REXX): Operates as an independent oil and gas company in the Appalachian, Illinois, and Denver-Julesburg Basins. Market cap at $490.79M, most recent closing price at $9.29. PEG at 0.5. Net institutional purchases in the current quarter at 7.5M shares, which represents about 17.41% of the company's float of 43.08M shares.

2. CARBO Ceramics Inc. (CRR): Manufactures and supplies ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. Market cap at $1.7B, most recent closing price at $73.60. PEG at 0.37. Net institutional purchases in the current quarter at 2.7M shares, which represents about 13.68% of the company's float of 19.73M shares.

3. Pan American Silver Corp. (PAAS): Engages in the exploration, development, extraction, processing, production, refining, reclamation, and operation of silver properties. Market cap at $2.71B, most recent closing price at $17.60. PEG at 0.55. Net institutional purchases in the current quarter at 20.3M shares, which represents about 13.45% of the company's float of 150.97M shares.

4. Quicksilver Resources Inc. (KWK): Engages in the exploration, development, and production of unconventional natural gas onshore in North America. Market cap at $699.77M, most recent closing price at $4.04. PEG at 0.41. Net institutional purchases in the current quarter at 11.0M shares, which represents about 12.12% of the company's float of 90.75M shares.

5. C&J Energy Services, Inc. (CJES): Through its wholly-owned subsidiary, C&J Spec-Rent Services, Inc., provides specialty equipment services for oil and natural gas exploration and production companies in the Texas, Louisiana, and Oklahoma regions of the United States. Market cap at $894.06M, most recent closing price at $17.21. PEG at 0.25. Net institutional purchases in the current quarter at 3.7M shares, which represents about 10.3% of the company's float of 35.93M shares.

6. TransGlobe Energy Corp. (TGA): Operates as an exploration and production company with oil interests in the Arab Republic of Egypt and the Republic of Yemen. Market cap at $693.24M, most recent closing price at $9.49. PEG at 0.8. Net institutional purchases in the current quarter at 6.0M shares, which represents about 8.64% of the company's float of 69.45M shares.

7. Bill Barrett Corp. (BBG): Engages in the exploration, development, and production of natural gas and crude oil principally in the Rocky Mountain region of the United States. Market cap at $868.87M, most recent closing price at $18.06. PEG at 0.68. Net institutional purchases in the current quarter at 3.1M shares, which represents about 6.68% of the company's float of 46.39M shares.

8. Patterson-UTI Energy Inc. (PTEN): Provides onshore contract drilling services to oil and natural gas operators. Market cap at $2.37B, most recent closing price at $15.16. PEG at 0.37. Net institutional purchases in the current quarter at 9.7M shares, which represents about 6.38% of the company's float of 152.11M shares.

9. CONSOL Energy Inc. (CNX): Engages in the production of multi-fuel energy and provision of energy services primarily to the electric power generation industry in the United States. Market cap at $6.42B, most recent closing price at $28.20. PEG at 0.63. Net institutional purchases in the current quarter at 13.4M shares, which represents about 5.92% of the company's float of 226.42M shares.

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

Source: 9 Undervalued Basic Materials Stocks Being Bought Up By Hedge Funds