Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you value the buying trends of smart money institutional investors? If so, we ran a screen you may be interested in.

We began by screening 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.

Finally, we screened for those stocks trading at steep discounts to even their most pessimistic analyst target prices. This may indicate that these stocks are trading below their fair value.

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

Tool provided by Kapitall. More investing ideas on Kapitall Wire.

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. Acacia Research Corporation (ACTG): Develops, licenses, and enforces patented technologies in the United States. Market cap at $1.55B, most recent closing price at $31.27. PEG at 0.48. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $47.00. This implies a current upside of 18.24% from current levels around $39.75. Net institutional purchases in the current quarter at 6.0M shares, which represents about 13.06% of the company's float of 45.94M shares.

2. IPG Photonics Corporation (IPGP): Manufactures fiber lasers and amplifiers for use in a range of markets, such as materials processing, advanced technologies, telecommunications, and medical applications. Market cap at $2.24B, most recent closing price at $43.98. PEG at 0.7. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $54.00. This implies a current upside of 22.12% from current levels around $44.22. Net institutional purchases in the current quarter at 4.6M shares, which represents about 11.29% of the company's float of 40.75M shares.

3. Caribou Coffee Company, Inc. (CBOU): Operates coffeehouses primarily in the United States. Market cap at $246.24M, most recent closing price at $11.67. PEG at 0.9. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $14.00. This implies a current upside of 25.0% from current levels around $11.20. Net institutional purchases in the current quarter at 1.1M shares, which represents about 5.92% of the company's float of 18.59M shares.

4. Datalink Corp. (DTLK): Engages in the design, installation, and support of data center solutions to mid and large-size companies. Market cap at $147.11M, most recent closing price at $8.15. PEG at 0.59. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $11.50. This implies a current upside of 22.60% from current levels around $9.38. Net institutional purchases in the current quarter at 858.5K shares, which represents about 5.6% of the company's float of 15.32M shares.

5. Air Lease Corporation (AL): Engages in the purchase and leasing of aircraft. Market cap at $1.91B, most recent closing price at $18.98. PEG at 0.62. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $23.00. This implies a current upside of 21.95% from current levels around $18.86. Net institutional purchases in the current quarter at 4.3M shares, which represents about 5.2% of the company's float of 82.62M shares.

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

Source: 5 Hedge Fund Stock Picks Undervalued By Earnings Growth And Target Price