Interested in the high-growth prospects of emerging markets? We ran a screen with that idea in mind.
We began by screening for US-traded stocks of companies based in China. We then screened for those 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 (kapitall.com).
Do you think these stocks will outperform like hedge fund managers expect? Use this list as a starting point for your own analysis.
List sorted by net institutional purchases as a percent of share float.
1. Bona Film Group Limited (BONA): Distributes films in the People's Republic of China. Market cap at $353.25M. Price at $5.88. PEG at 0.53. Net institutional purchases in the current quarter at 287.7K shares, which represents about 18.93% of the company's float of 1.52M shares.
2. 21Vianet Group, Inc. (VNET): Provides carrier-neutral Internet data center services in China. Market cap at $633.80M. Price at $11.25. PEG at 0.67. Net institutional purchases in the current quarter at 3.3M shares, which represents about 10.96% of the company's float of 30.12M shares.
3. China XD Plastics Company Ltd. (CXDC): Market cap at $226.24M. Price at $4.77. PEG at 0.19. Net institutional purchases in the current quarter at 1.1M shares, which represents about 7.37% of the company's float of 14.93M shares.
4. Shanda Games Limited (GAME): Engages in the development and operation of online games in the People's Republic of China. Market cap at $1.10B. Price at $3.89. PEG at 0.44. Net institutional purchases in the current quarter at 4.1M shares, which represents about 6.22% of the company's float of 65.89M shares.
*Institutional data sourced from Fidelity, 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.