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Do you like investing with a stock's momentum? For ideas on how to start your search, we ran a screen on outperforming names.

We began by screening the S&P 500 index for stocks with upward momentum, trading above their 20-day, 50-day, and 200-day moving averages.

We then screened these names for those with bullish trends in shares shorted, with significant decreases in shares shorted month-over-month.

We highlighted this list because the S&P largely indexes the most watched stocks on the market, so it is arguably the most voted on share price as far as trading volume goes. Rallying share price and short covering signals that a very significant pool of investors are optimistic about these names. We feel Main Street investors would be wise to add these stocks to their watchlist for continued upside.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks will outperform like short sellers expect? Use this list as a starting point for your own analysis.

1. Peabody Energy Corp. (BTU): Engages in the exploration, mining, and production of coal. Market cap at $6.99B, most recent closing price at $26.06. Shares shorted have decreased from 24.67M to 19.76M over the last month, a decrease that represents about 1.84% of the company's float of 267.26M shares. Days to cover ratio at 2.26 days. The stock is trading 4% above its 20-day moving average, 4% above its 50-day MA, and 2.35% above its 200-day MA.

2. First Solar, Inc. (FSLR): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap at $2.61B, most recent closing price at $29.94. Shares shorted have decreased from 28.22M to 25.86M over the last month, a decrease that represents about 3.92% of the company's float of 60.22M shares. Days to cover ratio at 4.35 days. The stock is trading 19.35% above its 20-day moving average, 27.6% above its 50-day MA, and 44.64% above its 200-day MA.

3. Frontier Communications Corporation (FTR): Provides regulated and unregulated voice, data, and video services to residential, business, and wholesale customers in the United States. Market cap at $4.72B, most recent closing price at $4.73. Shares shorted have decreased from 232.80M to 221.79M over the last month, a decrease that represents about 1.11% of the company's float of 991.80M shares. Days to cover ratio at 22.52 days. The stock is trading 6.1% above its 20-day moving average, 2.8% above its 50-day MA, and 15.61% above its 200-day MA.

4. Netflix, Inc. (NFLX): Provides subscription-based Internet services for TV shows and movies in the United States and internationally. Market cap at $4.63B, most recent closing price at $83.37. Shares shorted have decreased from 17.21M to 15.18M over the last month, a decrease that represents about 4.16% of the company's float of 48.74M shares. Days to cover ratio at 2.84 days. The stock is trading 6.86% above its 20-day moving average, 21% above its 50-day MA, and 10.53% above its 200-day MA.

5. Parker Hannifin Corporation (PH): Manufactures fluid power systems, electromechanical controls, and related components. Market cap at $12.37B, most recent closing price at $82.90. Shares shorted have decreased from 7.35M to 5.29M over the last month, a decrease that represents about 1.4% of the company's float of 147.53M shares. Days to cover ratio at 3.55 days. The stock is trading 2% above its 20-day moving average, 1.65% above its 50-day MA, and 0.6% above its 200-day MA.

*Short data sourced from Yahoo Finance; all other data sourced from Finviz.

Source: 5 Rallying S&P 500 Stocks With Bullish Short Trends