18 Stocks Under $5 Being Bought Up By Hedge Funds

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:Looking to add some growth to your portfolio? For a closer look at some interesting high-growth names, we ran a screen. We began by screening for stocks trading under $5 a share for those with high growth, with 5-year projected EPS growth rates above 15%. We then screened for those with the confidence of big money investors, with significant net institutional purchases over the last quarter, indicating that institutional investors such as hedge fund managers expect these names to outperform.

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:The biotech industry is considered a growth industry with a very unique set of risks, mainly concerning the ability for research to turn into commercial success. For ideas on how to analyze stocks in the industry, we ran a screen. We screened the biotech industry for stocks seeing high amounts of net institutional purchases over the current quarter, indicating institutional investors such as hedge fund managers expect these names to outperform.

By Kapitall:One of the biggest considerations many investors make when deciding to purchase a stock is its value. If a stock is attractively priced relative to the value it holds, it will find potential buyers very easily. Keeping this idea in mind, we ran a screen on highly undervalued stocks, with PEG below 1 and P/FCF below 15. Based on these two measures, these stock prices are relatively low and the stock may be undervalued.

By Kapitall:Do you like gaining exposure to economic growth? One of the most well known ways to do that is through consumer goods stocks. When economic activity rises, so does spending and the revenues for consumer-oriented companies.

By Kapitall:Do you like relying on a stock's dividend income? For ideas on how to search for dividend stocks, we ran a screen you may find interesting. We screened dividend stocks that pay yields above 1% and sustainable payout ratios below 50% for those exhibiting the "golden cross" technical signal in which the stock's 50-day moving average crosses above its 200-day MA.

By Kapitall:Do you prefer stocks that pay part of their return in dividend income? For a closer look at some interesting dividend stocks, we ran a screen. We began by screening for stocks paying big dividend income, with dividend yields above 4% and sustainable payout ratios below 50%.