12 High-Growth Small Caps Under $5 Being Bought Up By Hedge Funds

By Kapitall:Do you like gaining exposure to consumer spending trends? For a closer look at interesting stocks from the consumer goods sector, we ran a screen. We began by screening the consumer goods sector for high-growth names, with 5-year projected EPS growth above 15%.

By Kapitall:Do you like the growth prospects of tech stocks such as semiconductors? For a closer look at the industry, we ran a screen you might find interesting. We began by screening the semiconductor industry for stocks that appear undervalued relative to earnings growth, with PEG below 1. We then screened these names for those with the optimism of smart money investors, with significant net institutional purchases over the last quarter representing at least 5% of share float.

By Kapitall:If you're interested in adding some growth to your portfolio, we ran a screen on the biotech industry keeping this idea in mind. We began by screening US-traded stocks of the biotech industry for those with high growth prospects, with 5-year projected EPS growth above 20%. We then screened these names to find those with bullish sentiment from the smart money, with significant net institutional purchases over the last quarter (net institutional purchases at least 5% of share float).

By Kapitall:Looking to add some growth to your portfolio? For a closer look at some high-growth names from the semiconductors industry, we ran a screen. We began by screening the semiconductors industry for high-growth stocks, with 5-year projected EPS growth above 15%.

By Kapitall:Do you consider yourself a contrarian investor, always looking for opportunities against the trend? For a closer look at potentially underestimated names, we ran a screen. We began by screening the tech sector for stocks that are highly shorted, with float shorts above 10%. We then screened these names for those with the backing of institutional investors such as hedge fund managers, with significant net institutional purchases over the last quarter.

By Kapitall:Do you prefer investing with a stock's momentum trends? For ideas on how to screen for stocks with positive momentum, we ran a screen. We began by screening for stocks trading under $5 that are currently rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

By Kapitall:Interested in the high growth prospects of the clean energy industry? For a closer look at the industry's stocks, we ran a screen. We began by compiling a list of companies that either use or produce clean sources of energy, and then we screened that universe for high-growth stocks, with 5-year projected EPS growth rates above 15%.

By Kapitall:Do you prefer stocks trading at low share prices? If so, one thing to keep in mind is the possibility of "value traps," or stocks that appear to hold value with low share prices but in fact are trading there for a negative reason.