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The following is a list of undervalued stocks, as defined by the Price to Free Cash Flow (P/FCF) ratios. Judging by the numbers of open call option positions relative to put option positions, it appears that options traders expect these names to see some more downside over the coming weeks.

To compile this list, we started with a universe of about 120 stocks that have P/FCF ratios below 5. We then narrowed down the list by only focusing on those stocks that have a large number of open put option positions relative to call option positions, i.e. bearish options market sentiment.

Is the options market underestimating these names? This list might offer an interesting starting point for a value-oriented investor. Full details below.

Options data sourced from Schaeffer's, P/FCF ratios sourced from Finviz.

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. Interactive Brokers Group, Inc. (NASDAQ:IBKR): Investment Brokerage Industry. Market cap of $751.94M. P/FCF at 1.2. Call open interest at 16,207 contracts vs. put open interest at 230,817 contracts (Put/Call ratio at 14.24). Short float at 4.31%, which implies a short ratio of 4.54. The stock has gained 5.38% over the last year.

2. Entercom Communications Corp. (NYSE:ETM): Radio Industry. Market cap of $385.94M. P/FCF at 4.43. Call open interest at 232 contracts vs. put open interest at 2,694 contracts (Put/Call ratio at 11.61). Short float at 12.18%, which implies a short ratio of 16.26. The stock has gained 34.37% over the last year.

3. PH Glatfelter Co. (NYSE:GLT): Paper & Paper Products Industry. Market cap of $561.79M. P/FCF at 4.75. Call open interest at 64 contracts vs. put open interest at 390 contracts (Put/Call ratio at 6.09). Short float at 5.14%, which implies a short ratio of 12.41. The stock has lost -9.53% over the last year.

4. Barclays PLC (NYSE:BCS): Foreign Money Center Banks Industry. Market cap of $54.91B. P/FCF at 0.52. Call open interest at 37,287 contracts vs. put open interest at 116,368 contracts (Put/Call ratio at 3.12). Short float at 0.19%, which implies a short ratio of 2.06. The stock has lost -8.99% over the last year.

5. Alliance Data Systems Corporation (NYSE:ADS): Credit Services Industry. Market cap of $3.75B. P/FCF at 4.89. Call open interest at 8,767 contracts vs. put open interest at 25,629 contracts (Put/Call ratio at 2.92). Short float at 36.73%, which implies a short ratio of 20.51. The stock has gained 6.3% over the last year.

6. World Acceptance Corp. (NASDAQ:WRLD): Credit Services Industry. Market cap of $840.72M. P/FCF at 4.67. Call open interest at 874 contracts vs. put open interest at 2,316 contracts (Put/Call ratio at 2.65). Short float at 26.19%, which implies a short ratio of 22.73. The stock has gained 39.93% over the last year.

7. W&T Offshore Inc. (NYSE:WTI): Oil & Gas Drilling & Exploration Industry. Market cap of $1.35B. P/FCF at 4.2. Call open interest at 3,304 contracts vs. put open interest at 8,325 contracts (Put/Call ratio at 2.52). Short float at 29.53%, which implies a short ratio of 10.44. The stock has gained 54.17% over the last year.

8. Annaly Capital Management, Inc. (NYSE:NLY): REIT. Market cap of $11.06B. P/FCF at 1.49. Call open interest at 62,468 contracts vs. put open interest at 131,923 contracts (Put/Call ratio at 2.11). Short float at 5.05%, which implies a short ratio of 2.76. The stock has gained 18.44% over the last year.

9. SUPERVALU Inc. (NYSE:SVU): Grocery Stores Industry. Market cap of $1.61B. P/FCF at 2.37. Call open interest at 46,218 contracts vs. put open interest at 88,073 contracts (Put/Call ratio at 1.91). Short float at 13.61%, which implies a short ratio of 3.9. The stock has lost -42.72% over the last year.

10. GenCorp Inc. (NYSE:GY): Aerospace/Defense Industry. Market cap of $303.45M. P/FCF at 3.52. Call open interest at 82 contracts vs. put open interest at 149 contracts (Put/Call ratio at 1.82). Short float at 11.22%, which implies a short ratio of 14.6. The stock has lost -22.26% over the last year.

11. China Life Insurance Co. Ltd. (NYSE:LFC): Life Insurance Industry. Market cap of $116.56B. P/FCF at 4.18. Call open interest at 29,632 contracts vs. put open interest at 52,443 contracts (Put/Call ratio at 1.77). Short float at 0.25%, which implies a short ratio of 2.66. The stock has lost -13.82% over the last year.

12. CompuCredit Holdings Corp. (CCRT): Credit Services Industry. Market cap of $314.83M. P/FCF at 0.87. Call open interest at 943 contracts vs. put open interest at 1,662 contracts (Put/Call ratio at 1.76). Short float at 11.99%, which implies a short ratio of 50.58. The stock has gained 89.34% over the last year.

13. Delphi Financial Group, Inc. (NYSE:DFG): Life Insurance Industry. Market cap of $1.58B. P/FCF at 4.46. Call open interest at 78 contracts vs. put open interest at 136 contracts (Put/Call ratio at 1.74). Short float at 4.79%, which implies a short ratio of 11.1. The stock has gained 32.6% over the last year.

14. Capital One Financial Corp. (NYSE:COF): Credit Services Industry. Market cap of $21.11B. P/FCF at 2.78. Call open interest at 88,188 contracts vs. put open interest at 141,970 contracts (Put/Call ratio at 1.61). Short float at 4.23%, which implies a short ratio of 3.78. The stock has gained 10.92% over the last year.

15. MCG Capital Corporation (NASDAQ:MCGC): Asset Management Industry. Market cap of $548.51M. P/FCF at 4.25. Call open interest at 2,455 contracts vs. put open interest at 3,890 contracts (Put/Call ratio at 1.58). Short float at 2.52%, which implies a short ratio of 4.51. The stock has gained 58.98% over the last year.

16. Horace Mann Educators Corp. (NYSE:HMN): Property & Casualty Insurance Industry. Market cap of $713.37M. P/FCF at 4.45. Call open interest at 14 contracts vs. put open interest at 22 contracts (Put/Call ratio at 1.57). Short float at 2%, which implies a short ratio of 3.58. The stock has gained 43.79% over the last year.

17. Principal Financial Group Inc. (NYSE:PFG): Asset Management Industry. Market cap of $10.36B. P/FCF at 4.78. Call open interest at 8,102 contracts vs. put open interest at 12,629 contracts (Put/Call ratio at 1.56). Short float at 3.39%, which implies a short ratio of 3.87. The stock has gained 25.4% over the last year.

18. AFLAC Inc. (NYSE:AFL): Accident & Health Insurance Industry. Market cap of $26.24B. P/FCF at 4.3. Call open interest at 47,871 contracts vs. put open interest at 72,661 contracts (Put/Call ratio at 1.52). Short float at 1.45%, which implies a short ratio of 2.3. The stock has gained 12.42% over the last year.

19. China Unicom Limited (NYSE:CHU): Wireless Communications Industry. Market cap of $33.41B. P/FCF at 3.17. Call open interest at 3,697 contracts vs. put open interest at 5,584 contracts (Put/Call ratio at 1.51). Short float at 0.51%, which implies a short ratio of 1.75. The stock has gained 11.39% over the last year.

20. Clearwater Paper Corporation (NYSE:CLW): Paper & Paper Products Industry. Market cap of $918.97M. P/FCF at 4.52. Call open interest at 702 contracts vs. put open interest at 1,051 contracts (Put/Call ratio at 1.5). Short float at 3.49%, which implies a short ratio of 5.55. The stock has gained 45.18% over the last year.

Source: Contrarian Ideas: 20 Undervalued Stocks With Bearish Options Sentiment