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Looking for outperforming stocks? Be cautious with these names because short sellers are signaling their winning streaks may soon be over.

To create the list below we started with a universe of stocks with market caps above $300 million. Then, to find names showing upside momentum, we screened for stocks on "winning streaks."

For our purposes, a winning streak is measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

Next, we looked for signs that their streak could be over, or at the very least have peaked. For this we turned to short seller trends and identified stocks that have increased short positions month-over-month.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Perhaps short sellers are wrong to be pessimistic, but the sentiment is worth consideration. Use this list as a starting-off point for your own analysis.

1. Hercules Offshore, Inc. (NASDAQ:HERO): Provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U. Market cap at $1.02B, most recent closing price at $6.51. Shares shorted have increased from 11.07M to 14.47M over the last month, an increase which represents about 2.23% of the company's float of 152.31M shares. Days to cover ratio at 4.92 days.

The stock's average daily alpha vs. the S&P500 index stands at 0.87% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.5).

2. Infinity Pharmaceuticals, Inc. (NASDAQ:INFI): Engages in the discovery and development of medicines for the treatment of cancer and other conditions in the United States. Market cap at $1.46B, most recent closing price at $37.21. Shares shorted have increased from 2.74M to 2.99M over the last month, an increase which represents about 1.14% of the company's float of 22.00M shares. Days to cover ratio at 5.25 days.

The stock's average daily alpha vs. the S&P500 index stands at 2.01% (measured close to close, over the last month). During this period, the longest winning streak lasted 8 days (i.e. the stock's daily returns outperformed the S&P 500 for 8 consecutive days). The longest losing streak lasted 3 days (i.e. a win streak / losing streak ratio of 2.67).

3. McMoRan Exploration Co. (NYSE:MMR): Engages in the exploration, development, and production of oil and natural gas offshore in the Gulf of Mexico and onshore in the Gulf Coast area of the United States. Market cap at $2.58B, most recent closing price at $15.87. Shares shorted have increased from 23.43M to 26.27M over the last month, an increase which represents about 2.97% of the company's float of 95.64M shares. Days to cover ratio at 4.44 days.

The stock's average daily alpha vs. the S&P500 index stands at 4.21% (measured close to close, over the last month). During this period, the longest winning streak lasted 6 days (i.e. the stock's daily returns outperformed the S&P 500 for 6 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.).

4. Nexstar Broadcasting Group Inc. (NASDAQ:NXST): A television broadcasting and digital media company, engages in the acquisition, development, and operation of television stations and interactive community Websites in medium-sized markets in the United States. Market cap at $336.63M, most recent closing price at $11.66. Shares shorted have increased from 323.82K to 511.57K over the last month, an increase which represents about 1.05% of the company's float of 17.88M shares. Days to cover ratio at 1.79 days.

The stock's average daily alpha vs. the S&P500 index stands at 0.9% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

5. Suntech Power Holdings Co. Ltd. (NYSE:STP): Engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. Market cap at $329.71M, most recent closing price at $1.84. Shares shorted have increased from 19.48M to 22.49M over the last month, an increase which represents about 2.35% of the company's float of 127.82M shares. Days to cover ratio at 9.45 days.

The stock's average daily alpha vs. the S&P500 index stands at 3.74% (measured close to close, over the last month). During this period, the longest winning streak lasted 7 days (i.e. the stock's daily returns outperformed the S&P 500 for 7 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.5).

Source: These Stocks Are On Winning Streaks, But Short Sellers Aren't Optimistic