Here we present a list of 10 stocks that have demonstrated bullish momentum and met the following requirements:
- Recently hit a new 52-week high
- Significant levels of net purchases from institutional investors over the current quarter
- Market cap over $300M
Before you dive into the list, take a moment to review the implications of these list requirements.
Momentum investing aims to capitalize on the continuance of existing trends and the strength behind it. The stocks on this list demonstrate momentum by reaching their 52-week high.
The 52-week high is the highest price paid for a share of the company in the last 52 weeks (one year).
Institutional investors are also known as "big money" investors or managers. They represent big pools of money such as investment banks, pension funds, mutual funds, hedge funds, endowment funds, etc. When they invest in stocks, they can invest hundreds of thousands of dollars or more at one time. These transactions, called "block trades," can have a significant effect on share prices.
Because institutional investors handle such large amounts of money, it is easy enough to assume that the big money managers know what they are doing -- or at the very least, know more than the average investor. This is why these investors are also sometimes referred to as "smart money."
If institutional investors start investing in a company, regular investors can assume that some of the most talented analysts and money managers expect the company's share prices to increase over time. The stocks on our list are experiencing significant investment from big money.
Market capitalization (market cap): Market capitalization, commonly referred to as market cap, is the total market value of a company's outstanding shares. It can be thought of as a measure of company's size. It can be calculated by multiplying the number of shares by the current price of the shares. Companies with higher market cap are considered to have more trustworthy information because they have greater histories of profitability and data.
Hedge funds seem to think these names have more upside to price in. Do you agree? (Click here to access free, interactive tools to analyze these ideas.)
1. El Paso Pipeline Partners
2. Equity LifeStyle Properties
5. CVR Partners
6. Oxford Industries
7. Merge Healthcare
9. Caliper Life Sciences
10. Hi Tech Pharmacal
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman and Eben Esterhuizen does not own any of the shares mentioned above. Institutional data sourced from Fidelity.