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

We began by screening the small-cap sector for stocks with strong upward momentum, trading within 5% of their 52-week high.

Then we screened for those stocks that may also be undervalued, by comparing price trends to changes in EPS estimates over the last month.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by increases in price. When they don't match up, a mispricing may have occurred.

We screened for stocks with faster growth in EPS estimates than price over the last month, which may indicate that these names are being undervalued.

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 these stocks will break through to new highs? Use this list as a starting point for your own analysis.

List sorted by increase in EPS estimate over the last month.

1. Kongzhong Corp. (KONG): Provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. Market cap at $320.77M, most recent closing price at $7.72. The stock is currently trading 1.01% below its 52-week high. The EPS estimate for the company's current year increased from 0.46 to 0.63 over the last 30 days, an increase of 36.96%. This increase came during a time when the stock price changed by 29.8% (from 5.94 to 7.71 over the last 30 days).

2. Collective Brands, Inc. (PSS): Engages in the wholesale and retail of footwear and related accessories worldwide. Market cap at $1.3B, most recent closing price at $21.23. The stock is currently trading 0.70% below its 52-week high. The EPS estimate for the company's current year increased from 1.09 to 1.31 over the last 30 days, an increase of 20.18%. This increase came during a time when the stock price changed by -0.51% (from 21.38 to 21.27 over the last 30 days).

3. Delek US Holdings Inc. (DK): Engages in refining, wholesaling, and marketing petroleum products in the United States. Market cap at $928.87M, most recent closing price at $15.96. The stock is currently trading 1.70% below its 52-week high. The EPS estimate for the company's current year increased from 2.75 to 3.01 over the last 30 days, an increase of 9.45%. This increase came during a time when the stock price changed by 0.43% (from 16.14 to 16.21 over the last 30 days).

4. STAG Industrial, Inc. (STAG): Is a real estate investment trust. Market cap at $323.17M, most recent closing price at $13.90. The stock is currently trading 4.95% below its 52-week high. The EPS estimate for the company's current year increased from 1.1 to 1.19 over the last 30 days, an increase of 8.18%. This increase came during a time when the stock price changed by -3.34% (from 14.38 to 13.9 over the last 30 days).

5. Allegiant Travel Company (ALGT): Operates as a leisure travel company in the United States. Market cap at $1.25B, most recent closing price at $65.04. The stock is currently trading 2.35% below its 52-week high. The EPS estimate for the company's current year increased from 3.8 to 4.03 over the last 30 days, an increase of 6.05%. This increase came during a time when the stock price changed by 2.66% (from 64 to 65.7 over the last 30 days).

*EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 5 Small-Caps Trading Near Highs Undervalued By EPS Trends