Contrarian Ideas: 18 Breakout Stocks With Worsening Analyst Sentiment

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 |  Includes: AAV, ASH, CL, COLB, CRL, ETH, HALO, HBHC, IRM, LEG, LHCG, MAS, NYT, PPL, ROCK, SRX, STX
by: Kapitall

The following is a list of breakout stocks, based on moving average trends. For this article, we define an inflection point as the convergence between the 50-day and 200-day moving averages.

When these two moving averages cross, it often represents a shift in investor sentiment. If the 50-day MA moves above the 200-day MA (bullish), it's called a "Golden Cross" signal. If, on the other hand, the 50-day MA crosses below the 200-day MA (bearish), it's called the "Death Cross."

All of the stocks mentioned below have recently seen the SMA50 move above the SMA200 (bullish signal).

In addition, all of these stocks have seen worsening analyst sentiment over the last three months. Analyst ratings are presented on a linear scale, where ratings close to 1 indicate "Strong Buy" while ratings close to 5 indicate "Strong Sell". All of the stocks in this list have seen their ratings move closer towards 5 over the last 3 months, i.e. worsening analyst sentiment.

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

Analyst ratings sourced from Reuters, short float and performance data sourced from Finviz.

The list has been sorted by the change in analyst ratings over the last three months.

1. Columbia Banking System Inc. (NASDAQ:COLB): Savings & Loans Industry. Market cap of $829.68M. SMA50 at $19.53 vs. SMA200 at $19.49 (current price at $21.09). Current analyst rating at 2.56 vs. a rating of 2 three months ago. Short float at 8.68%, which implies a short ratio of 16.52 days. The stock has gained 15.18% over the last year.

2. Halozyme Therapeutics, Inc. (NASDAQ:HALO): Biotechnology Industry. Market cap of $756.24M. SMA50 at $7.5 vs. SMA200 at $7.48 (current price at $7.53). Current analyst rating at 1.7 vs. a rating of 1.33 three months ago. Short float at 4.27%, which implies a short ratio of 8.31 days. The stock has gained 29.38% over the last year.

3. Ashland Inc. (NYSE:ASH): Chemicals Industry. Market cap of $4.37B. SMA50 at $52.26 vs. SMA200 at $51.96 (current price at $55.32). Current analyst rating at 2.1 vs. a rating of 1.7 three months ago. Short float at 1.65%, which implies a short ratio of 1.17 days. The stock has gained 38.86% over the last year.

4. SRA International Inc. (NYSE:SRX): Information Technology Services Industry. Market cap of $1.44B. SMA50 at $21.18 vs. SMA200 at $20.95 (current price at $25.14). Current analyst rating at 2.81 vs. a rating of 2.29 three months ago. Short float at 3.78%, which implies a short ratio of 3.68 days. The stock has gained 36.19% over the last year.

5. Charles River Laboratories International, Inc. (NYSE:CRL): Biotechnology Industry. Market cap of $2.16B. SMA50 at $34.31 vs. SMA200 at $33.58 (current price at $37.49). Current analyst rating at 2.76 vs. a rating of 2.25 three months ago. Short float at 14.25%, which implies a short ratio of 6.41 days. The stock has gained 0.24% over the last year.

6. Leggett & Platt, Incorporated (NYSE:LEG): Home Furnishings & Fixtures Industry. Market cap of $3.36B. SMA50 at $21.63 vs. SMA200 at $21.41 (current price at $22.95). Current analyst rating at 2.43 vs. a rating of 2 three months ago. Short float at 2.64%, which implies a short ratio of 2.42 days. The stock has gained 14.75% over the last year.

7. LHC Group, Inc. (NASDAQ:LHCG): Home Health Care Industry. Market cap of $536.68M. SMA50 at $27.56 vs. SMA200 at $27.18 (current price at $28.73). Current analyst rating at 2.5 vs. a rating of 2.07 three months ago. Short float at 10.15%, which implies a short ratio of 10.93 days. The stock has lost -9.71% over the last year.

8. PPL Corporation (NYSE:PPL): Electric Utilities Industry. Market cap of $12.4B. SMA50 at $25.9 vs. SMA200 at $25.89 (current price at $25.65). Current analyst rating at 2.38 vs. a rating of 2 three months ago. Short float at 1.12%, which implies a short ratio of 1.33 days. The stock has lost -15.23% over the last year.

9. Seagate Technology PLC (NASDAQ:STX): Data Storage Devices Industry. Market cap of $6.72B. SMA50 at $14.59 vs. SMA200 at $14.43 (current price at $14.26). Current analyst rating at 2.52 vs. a rating of 2.17 three months ago. Short float at 2.09%, which implies a short ratio of 0.69 days. The stock has lost -19.77% over the last year.

10. Gibraltar Industries, Inc. (NASDAQ:ROCK): Steel & Iron Industry. Market cap of $384.2M. SMA50 at $11.57 vs. SMA200 at $11.05 (current price at $12.68). Current analyst rating at 2.5 vs. a rating of 2.17 three months ago. Short float at 3.47%, which implies a short ratio of 6.63 days. The stock has lost -19.29% over the last year.

11. The New York Times Company (NYSE:NYT): Newspapers Industry. Market cap of $1.49B. SMA50 at $9.26 vs. SMA200 at $9.06 (current price at $10.23). Current analyst rating at 3.43 vs. a rating of 3 three months ago. Short float at 10.31%, which implies a short ratio of 4.37 days. The stock has lost -23.26% over the last year.

12. Ethan Allen Interiors Inc. (NYSE:ETH): Home Furnishings & Fixtures Industry. Market cap of $586.67M. SMA50 at $18.32 vs. SMA200 at $17.48 (current price at $20.42). Current analyst rating at 2.83 vs. a rating of 2.5 three months ago. Short float at 14.98%, which implies a short ratio of 16.54 days. The stock has gained 40.34% over the last year.

13. Masco Corporation (NYSE:MAS): Lumber, Wood Production Industry. Market cap of $5.02B. SMA50 at $12.22 vs. SMA200 at $12.21 (current price at $14.). Current analyst rating at 3.11 vs. a rating of 2.76 three months ago. Short float at 5.26%, which implies a short ratio of 3.91 days. The stock has lost -4.37% over the last year.

14. Ascena Retail Group, Inc. (NASDAQ:ASNA): Apparel Stores Industry. Market cap of $2.1B. SMA50 at $25.29 vs. SMA200 at $25.18 (current price at $26.61). Current analyst rating at 1.75 vs. a rating of 1.57 three months ago. Short float at 9.41%, which implies a short ratio of 6.71 days. The stock has gained 6.65% over the last year.

15. Iron Mountain Inc. (NYSE:IRM): Business Software & Services Industry. Market cap of $4.96B. SMA50 at $23.63 vs. SMA200 at $23.29 (current price at $24.8). Current analyst rating at 2.31 vs. a rating of 2.08 three months ago. Short float at 5.27%, which implies a short ratio of 5.74 days. The stock has gained 3.33% over the last year.

16. Advantage Oil & Gas Ltd. (NYSE:AAV): Oil & Gas Drilling & Exploration Industry. Market cap of $1.18B. SMA50 at $6.52 vs. SMA200 at $6.51 (current price at $7.22). Current analyst rating at 2.22 vs. a rating of 2 three months ago. Short float at 0.29%, which implies a short ratio of 1.38 days. The stock has gained 17.02% over the last year.

17. Colgate-Palmolive Co. (NYSE:CL): Personal Products Industry. Market cap of $37.8B. SMA50 at $78.67 vs. SMA200 at $78.57 (current price at $78.31). Current analyst rating at 2.88 vs. a rating of 2.61 three months ago. Short float at 1.45%, which implies a short ratio of 2.63 days. The stock has gained 0.38% over the last year.

18. Hancock Holding Co. (NASDAQ:HBHC): Regional Bank. Market cap of $1.24B. SMA50 at $33.5 vs. SMA200 at $33.44 (current price at $33.66). Current analyst rating at 2.54 vs. a rating of 2.31 three months ago. Short float at 6.42%, which implies a short ratio of 9.4 days. The stock has lost -22.57% 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.