Do you want to add some growth to your portfolio? For ideas on how to start your search, we ran a screen.
We began by screening the tech sector for stocks that appear undervalued relative to earnings growth, with PEG below 1. We then screened for those with the most significant net institutional purchases over the current quarter, indicating institutional investors such as hedge fund managers expect these names to outperform.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these companies will outperform like institutional investors expect? Use this list as a starting point for your own analysis.
1. Cirrus Logic Inc. (NASDAQ:CRUS): Develops high-precision analog and mixed-signal integrated circuits. PEG at 0.52. Net institutional purchases in the current quarter at 2.8M shares, which represents about 4.41% of the company's float of 63.44M shares.
2. CGI Group, Inc. (NYSE:GIB): Provides information technology services and business process services in Canada, the United States, India, Europe, and the Asia Pacific. PEG at 0.87. Net institutional purchases in the current quarter at 6.5M shares, which represents about 3.27% of the company's float of 198.82M shares.
3. ICG Group, Inc. (ICGE): A private equity and venture capital firm specializing in patient capital, growth capital, acquisitions, and mid and late venture investments in public and private companies. PEG at 0.59. Net institutional purchases in the current quarter at 2.3M shares, which represents about 6.79% of the company's float of 33.88M shares.
4. InfoSpace Inc. (NYSE:INSP): Develops search tools and technologies that assist consumers with finding content and information on the Internet. PEG at 0.83. Net institutional purchases in the current quarter at 1.2M shares, which represents about 3.67% of the company's float of 32.69M shares.
5. IPG Photonics Corporation (NASDAQ:IPGP): Manufactures fiber lasers and amplifiers for use in a range of markets, such as materials processing, advanced technologies, telecommunications, and medical applications. PEG at 0.96. Net institutional purchases in the current quarter at 1.6M shares, which represents about 4.31% of the company's float of 37.14M shares.
6. Keynote Systems Inc. (NASDAQ:KEYN): Provides Internet and mobile cloud monitoring solutions worldwide. PEG at 0.38. Net institutional purchases in the current quarter at 1.1M shares, which represents about 8.12% of the company's float of 13.54M shares.
7. Nanometrics Incorporated (NASDAQ:NANO): Provides high-performance process control metrology systems used primarily in the fabrication of semiconductors, high-brightness LEDs, data storage devices, and solar photovoltaics. PEG at 0.98. Net institutional purchases in the current quarter at 1.7M shares, which represents about 8.97% of the company's float of 18.95M shares.
8. OYO Geospace Corp. (OYOG): Engages in designing and manufacturing instruments and equipments used in the acquisition and processing of seismic data; and in the characterization and monitoring of producing oil and gas reservoirs. PEG at 0.63. Net institutional purchases in the current quarter at 258.5K shares, which represents about 4.26% of the company's float of 6.07M shares.
9. Power-One Inc. (NASDAQ:PWER): Designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other technology markets. PEG at 0.33. Net institutional purchases in the current quarter at 16.9M shares, which represents about 17.11% of the company's float of 98.80M shares.
10. SanDisk Corp. (SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. PEG at 0.76. Net institutional purchases in the current quarter at 11.2M shares, which represents about 4.7% of the company's float of 238.50M shares.
11. Spreadtrum Communications Inc. (NASDAQ:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. PEG at 0.34. Net institutional purchases in the current quarter at 9.6M shares, which represents about 26.29% of the company's float of 36.51M 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.