Are looking for rebound candidates? We ran a screen with that idea in mind.
We began by screening for stocks that are technically oversold, with Relative Strength Index readings over the last 14 days below 40. We then screened for those that appear undervalued relative to earnings growth, with PEG below 1.
In looking for candidates that might be on the rebound we analyzed short seller trends over the past month.We took only the names that have seen a significant decrease in shares shorted month over month, a sign short sellers (who benefit when share price falls) are feeling more optimistic about the future of these names.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Short sellers seem more optimistic about these names, do you agree with them that these stocks are undervalued?
Use this list as a starting point for your own analysis. List Average 1-Year Return: 6%. Diversification score: 47%.
1. Questcor Pharmaceuticals, Inc. (QCOR, Earnings, Analysts, Financials): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $1.8B, most recent closing price at $30.13. PEG at 0.24. RSI(14) at 21.91. Shares shorted have decreased from 21.90M to 21.19M over the last month, a decrease which represents about 1.24% of the company’s float of 57.18M shares. Days to cover ratio at 5.03 days.
2. Coinstar, Inc. (CSTR, Earnings, Analysts, Financials): Provides automated retail solutions primarily in the United States, Canada, Puerto Rico, the United Kingdom, and Ireland. Market cap at $1.46B, most recent closing price at $46.52. PEG at 0.49. RSI(14) at 25.91. Shares shorted have decreased from 9.48M to 9.08M over the last month, a decrease which represents about 1.32% of the company’s float of 30.33M shares. Days to cover ratio at 6.13 days.
3. LeapFrog Enterprises Inc. (LF, Earnings, Analysts, Financials): Provides technology-based learning platforms worldwide. Market cap at $579.09M, most recent closing price at $8.62. PEG at 0.7. RSI(14) at 33.04. Shares shorted have decreased from 4.57M to 3.76M over the last month, a decrease which represents about 1.56% of the company’s float of 51.83M shares. Days to cover ratio at 3.06 days.
4. Big Lots Inc. (BIG, Earnings, Analysts, Financials): Operates as a broad line closeout retailer in the United States. Market cap at $1.84B, most recent closing price at $30.90. PEG at 0.97. RSI(14) at 33.14. Shares shorted have decreased from 7.32M to 6.27M over the last month, a decrease which represents about 1.81% of the company’s float of 58.08M shares. Days to cover ratio at 4.64 days.
5. Veeco Instruments Inc. (VECO, Earnings, Analysts, Financials): Designs, manufactures, and markets equipment to make high brightness light emitting diodes (HB LEDs), solar panels, hard-disk drives, and other devices. Market cap at $1.37B, most recent closing price at $34.96. PEG at 0.96. RSI(14) at 34.59. Shares shorted have decreased from 8.47M to 8.08M over the last month, a decrease which represents about 1.01% of the company’s float of 38.71M shares. Days to cover ratio at 10.62 days.
6. GrafTech International Ltd. (GTI, Earnings, Analysts, Financials): Manufactures graphite and carbon material science-based solutions. Market cap at $1.25B, most recent closing price at $9.32. PEG at 0.86. RSI(14) at 36.16. Shares shorted have decreased from 9.39M to 7.65M over the last month, a decrease which represents about 1.56% of the company’s float of 111.22M shares. Days to cover ratio at 8.27 days.
7. CEVA Inc. (CEVA, Earnings, Analysts, Financials): CEVA and its subsidiaries engage in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. Market cap at $353.53M, most recent closing price at $15.65. PEG at 0.68. RSI(14) at 36.65. Shares shorted have decreased from 2.03M to 1.80M over the last month, a decrease which represents about 1.03% of the company’s float of 22.33M shares. Days to cover ratio at 11.12 days.
8. VeriFone Systems, Inc (PAY, Earnings, Analysts, Financials): Designs, markets, and services electronic payment solutions that enable secure electronic payments among consumers, merchants, and financial institutions worldwide. Market cap at $3.43B, most recent closing price at $31.80. PEG at 0.59. RSI(14) at 39.04. Shares shorted have decreased from 8.59M to 7.09M over the last month, a decrease which represents about 1.42% of the company’s float of 105.84M shares. Days to cover ratio at 2.52 days.
Written by Rebecca Lipman, short data sourced from Yahoo! Finance, all other data soured from Finviz.
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Analyze These Ideas: Getting Started
Dig Deeper: Access Company Snapshots, Charts, Filings
- Questcor Pharmaceuticals, Inc. (QCOR, Chart, Download SEC Filings)
- Coinstar, Inc. (CSTR, Chart, Download SEC Filings)
- LeapFrog Enterprises Inc. (LF, Chart, Download SEC Filings)
- Big Lots Inc. (BIG, Chart, Download SEC Filings)
- Veeco Instruments Inc. (VECO, Chart, Download SEC Filings)
- GrafTech International Ltd. (GTI, Chart, Download SEC Filings)
- CEVA Inc. (CEVA, Chart, Download SEC Filings)
- VeriFone Systems, Inc (PAY, Chart, Download SEC Filings)
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