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Do you like to invest with a stock's trading momentum? We ran a screen with that idea in mind.

We began by screening a stock universe of companies that use or produce sources of clean energy for those with upward momentum, trading above their 20-day, 50-day, and 200-day moving averages.

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.

click for interactive chart

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

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

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

1. Ashland Inc. (NYSE:ASH): Operates as a specialty chemicals company in the United States and internationally. Market cap at $5.53B, most recent closing price at $70.39. The stock is trading 2.54% above its 20-day moving average, 4.78% above its 50-day MA, and 14.91% above its 200-day MA. The EPS estimate for the company's current year increased from 5.97 to 6.42 over the last 30 days, an increase of 7.54%. This increase came during a time when the stock price changed by 0.38% (from 70.13 to 70.4 over the last 30 days).

2. Federal Signal Corp. (NYSE:FSS): Designs and manufactures a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers worldwide. Market cap at $365.68M, most recent closing price at $5.88. The stock is trading 4.01% above its 20-day moving average, 10.95% above its 50-day MA, and 24.07% above its 200-day MA. The EPS estimate for the company's current year increased from 0.3 to 0.32 over the last 30 days, an increase of 6.67%. This increase came during a time when the stock price changed by -6.83% (from 6 to 5.59 over the last 30 days).

3. NRG Energy, Inc. (NYSE:NRG): Operates as a wholesale power generation company. Market cap at $4.46B, most recent closing price at $19.59. The stock is trading 5.38% above its 20-day moving average, 15.55% above its 50-day MA, and 12.34% above its 200-day MA. The EPS estimate for the company's current year increased from 0.79 to 0.93 over the last 30 days, an increase of 17.72%. This increase came during a time when the stock price changed by 12.13% (from 17.31 to 19.41 over the last 30 days).

*EPS 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 Rallying Clean Energy Stocks Undervalued By EPS Trends