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If you're a contrarian, the following list might be of interest to you. These stocks are being dragged down by extreme pessimism, defined by the following screen:

  • Negative return over the last year
  • An analyst ratings of sell or worse
  • Put/Call ratio above 1.00
  • Market cap over $300M

Here is the output of the screen. Detailed analysis below.

click for expanded image

The list has been sorted by the Put/Call ratio. Options data sourced from Schaeffer's, and short interest data sourced from Finviz.

Note: Analyst recommendation ratings close to 5 indicate a "Strong Sell", according to the analysts. All stocks in this list have analyst recommendations of 3.7 and higher.

1. United Microelectronics Corporation (NYSE:UMC): Semiconductor Equipment & Materials Industry. Market cap of $6,754B. Analyst recommendation at 3.7, with a Put/Call ratio of 2.56 (call open interest at 50 contracts, vs. put open interest at 128 contracts). Short float at 0.64%, which implies a short ratio of 4.56 days. The stock has lost -18.75% over the last year.

2. CGG Veritas (CGV): Oil & Gas Equipment & Services Industry. Market cap of $2,520B. Analyst recommendation at 3.7, with a Put/Call ratio of 1.58 (call open interest at 489 contracts, vs. put open interest at 772 contracts). Short float at 0.31%, which implies a short ratio of 3.73 days. The stock has lost -23.83% over the last year.

3. Telefonos de Mexico, S.A.B. de C.V. (NYSE:TMX): Long Distance Carriers Industry. Market cap of $12,653B. Analyst recommendation at 3.8, with a Put/Call ratio of 1.37 (call open interest at 2,710 contracts, vs. put open interest at 3,708 contracts). Short float at 5.24%, which implies a short ratio of 9.63 days. The stock has lost -19.32% over the last year.

4. LG Display Co., Ltd. (NYSE:LPL): Diversified Electronics Industry. Market cap of $10,126B. Analyst recommendation at 4.3, with a Put/Call ratio of 1.26 (call open interest at 660 contracts, vs. put open interest at 833 contracts). Short float at 2.85%, which implies a short ratio of 5.83 days. The stock has lost -3.87% over the last year.

5. Aluminum Corporation Of China Limited (NYSE:ACH): Aluminum Industry. Market cap of $10,592B. Analyst recommendation at 4, with a Put/Call ratio of 1.11 (call open intertest at 3,370 contracts, vs. put open interest at 3,727 contracts). Short float at 2.22%, which implies a short ratio of 7.86 days. The stock has lost -28.54% over the last year.

Disclosure: No positions

Source: 5 Stocks Being Dragged Down by Extreme Pessimism