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Do you consider the buying trends of "smart money" investors when comparing stocks? We ran a screen with this idea in mind.

We began by screening the industrial goods sector for stocks with strong upward momentum, trading within 5% of their 52-week highs.

We then screened for those with bearish sentiment from institutional investors, with significant net institutional sales 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 underperform in the future, despite trading near yearly highs.

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

(click to enlarge)

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these companies are in trouble, or are hedge funds calling it wrong? Use this list as a starting point for your own analysis.

List sorted by change in revenue over the last year.

1. Avery Dennison Corporation (AVY): Produces pressure-sensitive materials, office products, tickets, tags, labels, and other converted products. Market cap at $3.2B, most recent closing price at $31.50. The stocks is trading 4.45% below its 52-week high. Net institutional sales in the current quarter at -11.0M shares, which represents about 10.88% of the company's float of 101.12M shares.

2. Emerson Electric Co. (EMR): Operates as a diversified manufacturing and technology company. Market cap at $37.62B, most recent closing price at $51.72. The stocks is trading 2.6% below its 52-week high. Net institutional sales in the current quarter at -39.6M shares, which represents about 5.48% of the company's float of 722.96M shares.

3. Honeywell International Inc. (HON): Operates as a diversified technology and manufacturing company worldwide. Market cap at $45.55B, most recent closing price at $58.36. The stocks is trading 4.59% below its 52-week high. Net institutional sales in the current quarter at -76.6M shares, which represents about 9.83% of the company's float of 779.58M shares.

4. Lockheed Martin Corporation (LMT): Engages in the research, design, development, manufacture, integration, operation, and sustainment of advanced technology systems and products in the areas of defense, space, intelligence, homeland security, and government information technology in the United States and internationally. Market cap at $29.99B, most recent closing price at $92.45. The stocks is trading 1.82% below its 52-week high. Net institutional sales in the current quarter at -67.6M shares, which represents about 25.34% of the company's float of 266.77M shares.

5. Northrop Grumman Corporation (NOC): Provides products, services, and solutions in aerospace, electronics, information systems, shipbuilding and technical service sectors. Market cap at $16.66B, most recent closing price at $67.40. The stocks is trading 3.63% below its 52-week high. Net institutional sales in the current quarter at -32.8M shares, which represents about 14.43% of the company's float of 227.34M shares.

6. Snap-on Inc. (SNA): Snap-on Incorporated manufactures and markets tools, diagnostics, equipment, software, and service solutions for professional users in the United States, the United Kingdom, Canada, Germany, Japan, France, Australia, Spain, the Netherlands, Italy, China, and Sweden. Market cap at $4.07B, most recent closing price at $69.96. The stocks is trading 1.57% below its 52-week high. Net institutional sales in the current quarter at -4.1M shares, which represents about 7.09% of the company's float of 57.81M shares.

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

Source: Hedge Funds Are Selling These 6 Industrials Stocks Trading Near Highs