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The following is a list of undervalued stocks, as determined by the PEG ratio. All of the stocks mentioned below have PEG ratios below 1, which usually signal undervalued conditions.

In addition, all of these stocks have a large number of open put option positions relative to call option position, i.e. bearish options market sentiment.

If you're a contrarian investor, this excessive pessimism might raise a flag. Full details below.

PEG ratios sourced from Finviz, options data sourced from Schaeffer's.

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 Put/Call ratio.

1. Liberty Media Interactive (LINTA): Catalog & Mail Order Houses Industry. Market cap of $9.5B. PEG ratio at 0.94. Call open interest at 1,139 contracts vs. put open interest at 19,474 contracts (Put/Call ratio at 17.1). Short float at 1.32%, which implies a short ratio of 2.32 days. The stock has gained 38.45% over the last year.

2. Lender Processing Services, Inc. (LPS): Business Services Industry. Market cap of $2.79B. PEG ratio at 0.89. Call open interest at 3,070 contracts vs. put open interest at 17,134 contracts (Put/Call ratio at 5.58). Short float at 6.74%, which implies a short ratio of 4.05 days. The stock has lost -21.84% over the last year.

3. Big Lots Inc. (BIG): Discount, Variety Stores Industry. Market cap of $2.3B. PEG ratio at 0.84. Call open interest at 4,910 contracts vs. put open interest at 21,529 contracts (Put/Call ratio at 4.38). Short float at 6.85%, which implies a short ratio of 2.78 days. The stock has gained 2.56% over the last year.

4. Community Health Systems, Inc. (CYH): Hospitals Industry. Market cap of $3.59B. PEG ratio at 0.99. Call open interest at 7,947 contracts vs. put open interest at 30,734 contracts (Put/Call ratio at 3.87). Short float at 4.99%, which implies a short ratio of 2.85 days. The stock has gained 5.93% over the last year.

5. Royal Caribbean Cruises Ltd. (RCL): General Entertainment Industry. Market cap of $10.3B. PEG ratio at 0.81. Call open interest at 43,483 contracts vs. put open interest at 102,769 contracts (Put/Call ratio at 2.36). Short float at 7.87%, which implies a short ratio of 3.99 days. The stock has gained 89.62% over the last year.

6. Banco Itau Holding Financeira S.A. (ITUB): Foreign Money Center Banks Industry. Market cap of $107.34B. PEG ratio at 0.73. Call open interest at 33,571 contracts vs. put open interest at 68,140 contracts (Put/Call ratio at 2.03). Short float at 0.42%, which implies a short ratio of 1.08 days. The stock has gained 4.59% over the last year.

7. DeVry, Inc. (DV): Education & Training Services Industry. Market cap of $3.36B. PEG ratio at 0.83. Call open interest at 3,400 contracts vs. put open interest at 6,295 contracts (Put/Call ratio at 1.85). Short float at 2.38%, which implies a short ratio of 1.44 days. The stock has lost -15.9% over the last year.

8. Everest Re Group Ltd. (RE): Property & Casualty Insurance Industry. Market cap of $4.58B. PEG ratio at 0.96. Call open interest at 966 contracts vs. put open interest at 1,697 contracts (Put/Call ratio at 1.76). Short float at 1.65%, which implies a short ratio of 2 days. The stock has gained 1.14% over the last year.

9. Chimera Investment Corporation (CIM): Property Management Industry. Market cap of $3.62B. PEG ratio at 0.8. Call open interest at 9,335 contracts vs. put open interest at 15,968 contracts (Put/Call ratio at 1.71). Short float at 2.18%, which implies a short ratio of 1.06 days. The stock has gained 18.84% over the last year.

10. Capital One Financial Corp. (COF): Credit Services Industry. Market cap of $20.74B. PEG ratio at 0.76. Call open interest at 80,352 contracts vs. put open interest at 136,612 contracts (Put/Call ratio at 1.7). Short float at 4.23%, which implies a short ratio of 3.79 days. The stock has gained 6.55% over the last year.

11. Siemens AG (SI): Telecom Services. Market cap of $102.08B. PEG ratio at 0.94. Call open interest at 5,782 contracts vs. put open interest at 9,507 contracts (Put/Call ratio at 1.64). Short float at 0.09%, which implies a short ratio of 0.96 days. The stock has gained 24.23% over the last year.

12. Marvell Technology Group Ltd. (MRVL): Semiconductor Industry. Market cap of $12.72B. PEG ratio at 0.96. Call open interest at 99,049 contracts vs. put open interest at 154,089 contracts (Put/Call ratio at 1.56). Short float at 3%, which implies a short ratio of 1.31 days. The stock has lost -7.39% over the last year.

13. POSCO (PKX): Steel & Iron Industry. Market cap of $34.45B. PEG ratio at 0.78. Call open interest at 2,862 contracts vs. put open interest at 4,407 contracts (Put/Call ratio at 1.54). Short float at 0.13%, which implies a short ratio of 1.01 days. The stock has lost -17.91% over the last year.

14. Atlas Air Worldwide Holdings Inc. (AAWW): Air Services Industry. Market cap of $1.38B. PEG ratio at 0.71. Call open interest at 1,627 contracts vs. put open interest at 2,397 contracts (Put/Call ratio at 1.47). Short float at 3.4%, which implies a short ratio of 4.17 days. The stock has gained 36.61% over the last year.

15. Clean Harbors, Inc. (CLH): Waste Management Industry. Market cap of $2.15B. PEG ratio at 0.88. Call open interest at 3,307 contracts vs. put open interest at 4,867 contracts (Put/Call ratio at 1.47). Short float at 10.83%, which implies a short ratio of 14.11 days. The stock has gained 32.33% over the last year.

16. West Pharmaceutical Services, Inc. (WST): Medical Instruments & Supplies Industry. Market cap of $1.36B. PEG ratio at 0.89. Call open interest at 22 contracts vs. put open interest at 32 contracts (Put/Call ratio at 1.45). Short float at 6%, which implies a short ratio of 15.52 days. The stock has gained 7.7% over the last year.

17. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM): Semiconductor Industry. Market cap of $66.69B. PEG ratio at 0.98. Call open interest at 7,089 contracts vs. put open interest at 10,274 contracts (Put/Call ratio at 1.45). Short float at 0.36%, which implies a short ratio of 1.65 days. The stock has gained 17.53% over the last year.

18. First Solar, Inc. (FSLR): Semiconductor Industry. Market cap of $11.53B. PEG ratio at 0.8. Call open interest at 105,844 contracts vs. put open interest at 148,263 contracts (Put/Call ratio at 1.4). Short float at 30.06%, which implies a short ratio of 9.54 days. The stock has lost -4.24% over the last year.

19. Unum Group (UNM): Accident & Health Insurance Industry. Market cap of $7.93B. PEG ratio at 0.79. Call open interest at 7,808 contracts vs. put open interest at 10,749 contracts (Put/Call ratio at 1.38). Short float at 1.91%, which implies a short ratio of 2.51 days. The stock has gained 24.11% over the last year.

Source: Contrarian Ideas: Undervalued Stocks With Bearish Options Sentiment