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The following is a list of oversold stocks, as determined by the Relative Strength, or RSI(14), indicator. In addition, all of these stocks have seen a sharp increase in shares shorted over the last three months.

To create the list, we started with a universe of about 100 stocks with RSI(14) values below 490, which usually signal oversold conditions. We then narrowed down the list to only focus on those companies that have seen a significant increase in shares shorted between 9/15 - 12/15.

Given the recent pullback in these names, will short sellers buy back these shares, providing some support at current levels? What do you think?

Short trends data sourced from AOL Money, moving average and current short float data sourced from Finviz. Note that all short trends described occurred between 9/15 and 12/15.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.


The list has been sorted by the change in shares shorted between 9/15 - 12/15.

1. Kohl's Corp. (NYSE:KSS): Department Stores Industry. Market cap of $15.76B. RSI(14) at 34.57. Shares shorted have increased from 7.05M to 23.83M. Short float at 8.71%, which implies a short ratio of 4.94 days. The stock has lost -1.5% over the last year.

2. AngloGold Ashanti Ltd. (NYSE:AU): Gold Industry. Market cap of $17.99B. RSI(14) at 32.03. Shares shorted have increased from 2.1M to 6M. Short float at 1.61%, which implies a short ratio of 3.61 days. The stock has gained 6.59% over the last year.

3. Banco Santander, S.A. (STD): Foreign Money Center Banks Industry. Market cap of $86.4B. RSI(14) at 36.02. Shares shorted have increased from 6.59M to 17.11M. Short float at 0.22%, which implies a short ratio of 1.92 days. The stock has lost -36.21% over the last year.

4. Phillips-Van Heusen Corp. (NYSE:PVH): Apparel Clothing Industry. Market cap of $4.2B. RSI(14) at 34.05. Shares shorted have increased from 1.7M to 3.79M. Short float at 5.84%, which implies a short ratio of 4.09 days. The stock has gained 43.91% over the last year.

5. Yamana Gold, Inc. (NYSE:AUY): Gold Industry. Market cap of $8.93B. RSI(14) at 39.12. Shares shorted have increased from 3.35M to 6.33M. Short float at 0.86%, which implies a short ratio of 0.7 days. The stock has lost -0.99% over the last year.

6. Goldcorp Inc. (NYSE:GG): Gold Industry. Market cap of $32.49B. RSI(14) at 33.17. Shares shorted have increased from 7.67M to 13.6M. Short float at 1.85%, which implies a short ratio of 2.22 days. The stock has gained 5.68% over the last year.

7. MSC Industrial Direct Co. Inc. (NYSE:MSM):
Industrial Equipment Wholesale Industry. Market cap of $4.1B. RSI(14) at 39.51. Shares shorted have increased from 1.01M to 1.78M. Short float at 3.6%, which implies a short ratio of 6.96 days. The stock has gained 36.64% over the last year.

8. Regal Entertainment Group (NYSE:RGC):
Movie Production Industry. Market cap of $1.89B. RSI(14) at 36.63. Shares shorted have increased from 5.55M to 9.69M. Short float at 7.48%, which implies a short ratio of 5.65 days. The stock has lost -10.19% over the last year.

9. RPC Inc. (NYSE:RES): Oil & Gas Equipment & Services Industry. Market cap of $2.73B. RSI(14) at 34.81. Shares shorted have increased from 4.47M to 7.66M. Short float at 17.73%, which implies a short ratio of 6.49 days. The stock has gained 131.57% over the last year.

10. Warnaco Group Inc. (NYSE:WRC):
Apparel Clothing Industry. Market cap of $2.38B. RSI(14) at 38.26. Shares shorted have increased from 2.7M to 4.49M. Short float at 10.2%, which implies a short ratio of 6.29 days. The stock has gained 19.35% over the last year.

11. Molson Coors Brewing Company (NYSE:TAP): Brewers Industry. Market cap of $9.03B. RSI(14) at 30.57. Shares shorted have increased from 1.75M to 2.91M. Short float at 1.83%, which implies a short ratio of 2.89 days. The stock has gained 9.7% over the last year.

12. Pan American Silver Corp. (NASDAQ:PAAS): Silver Industry. Market cap of $4.09B. RSI(14) at 39.31. Shares shorted have increased from 2.02M to 3.34M. Short float at 3.17%, which implies a short ratio of 2.16 days. The stock has gained 51.15% over the last year.

13. The Travelers Companies, Inc. (NYSE:TRV): Property & Casualty Insurance Industry. Market cap of $25.36B. RSI(14) at 37.41. Shares shorted have increased from 8.47M to 12.93M. Short float at 2.82%, which implies a short ratio of 3.5 days. The stock has gained 18.44% over the last year.

14. The J. M. Smucker Company (NYSE:SJM): Processed & Packaged Goods Industry. Market cap of $7.53B. RSI(14) at 24.7. Shares shorted have increased from 1.17M to 1.72M. Short float at 1.49%, which implies a short ratio of 2.59 days. The stock has gained 4.49% over the last year.

15. Hanesbrands Inc. (NYSE:HBI): Apparel Clothing Industry. Market cap of $2.36B. RSI(14) at 39.95. Shares shorted have increased from 3.64M to 5.35M. Short float at 5.62%, which implies a short ratio of 6.09 days. The stock has lost -1.08% over the last year.

16. Eaton Vance Corp. (NYSE:EV): Asset Management Industry. Market cap of $3.57B. RSI(14) at 38.59. Shares shorted have increased from 6.03M to 8.59M. Short float at 7.47%, which implies a short ratio of 9.92 days. The stock has lost -1.02% over the last year.

17. Waste Connections Inc. (NYSE:WCN): Waste Management Industry. Market cap of $3.19B. RSI(14) at 33.16. Shares shorted have increased from 5.13M to 7.14M. Short float at 6.59%, which implies a short ratio of 14.91 days. The stock has lost -16.27% over the last year.

18. V.F. Corporation (NYSE:VFC):
Apparel Clothing Industry. Market cap of $9.23B. RSI(14) at 36.52. Shares shorted have increased from 4.37M to 5.9M. Short float at 5.46%, which implies a short ratio of 6.04 days. The stock has gained 17.89% over the last year.

19. Atwood Oceanics, Inc. (NYSE:ATW): Oil & Gas Drilling & Exploration Industry. Market cap of $2.32B. RSI(14) at 38.66. Shares shorted have increased from 4.5M to 6.01M. Short float at 10.69%, which implies a short ratio of 8.94 days. The stock has lost -6.17% over the last year.

20. LAN Airlines S.A. (NYSE:LFL): Regional Airlines Industry. Market cap of $10.06B. RSI(14) at 35.67. Shares shorted have increased from 5.17M to 6.88M. Short float at 35.53%, which implies a short ratio of 20.12 days. The stock has gained 81.87% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 20 Oversold Stocks Targeted by Short Sellers