Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

The following list might be an interesting starting point for value investors. All of these stocks have seen a recent decrease in the Put/Call ratio (i.e. rising number of call option contracts), which is based on open interest of option contracts. In addition, all of these stocks have PEG ratios below 1.0, which usually signal undervalued conditions.

Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the stocks mentioned below have a high number of open call option positions relative to put option positions, contrarians would think most of the stocks mentioned below are set for a correction. On the other hand, value investors may think these names are trading at attractive levels. What do you think? See full details below.

Options data sourced from Schaeffer's, short float and performance data sourced from Finviz. (Please note: All changes in the Put/Call ratio occur between 1/24 - 2/4)

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 the Put/Call ratio.

1. Barnes Group Inc. (B): Industrial Equipment & Components Industry. Market cap of $1.09B. PEG at 0.92. Current Put/Call ratio at 0.42 vs. previous Put/Call ratio at 0.78 (46.15% change). Short float at 7.89%, which implies a short ratio of 9.72 days. The stock has gained 31.01% over the last year.

2. Myriad Genetics Inc. (MYGN): Research Services Industry. Market cap of $1.77B. PEG at 0.5. Current Put/Call ratio at 0.28 vs. previous Put/Call ratio at 0.46 (39.13% change). Short float at 6.01%, which implies a short ratio of 5.14 days. The stock has lost -10.81% over the last year.

3. Triple-S Management Corporation (GTS): Accident & Health Insurance Industry. Market cap of $539.38M. PEG at 0.66. Current Put/Call ratio at 0.04 vs. previous Put/Call ratio at 0.06 (33.33% change). Short float at 2.13%, which implies a short ratio of 6.53 days. The stock has gained 15.76% over the last year.

4. Constellation Energy Group, Inc. (CEG): Electric Utilities Industry. Market cap of $6.53B. PEG at 0.22. Current Put/Call ratio at 0.15 vs. previous Put/Call ratio at 0.21 (28.57% change). Short float at 1.41%, which implies a short ratio of 1.23 days. The stock has gained 5.05% over the last year.

5. Brooks Automation Inc. (BRKS): Semiconductor Equipment & Materials Industry. Market cap of $833.63M. PEG at 0.77. Current Put/Call ratio at 0.28 vs. previous Put/Call ratio at 0.38 (26.32% change). Short float at 2.39%, which implies a short ratio of 2.88 days. The stock has gained 49.88% over the last year.

6. Goldcorp Inc. (GG): Gold Industry. Market cap of $33.24B. PEG at 0.42. Current Put/Call ratio at 0.46 vs. previous Put/Call ratio at 0.61 (24.59% change). Short float at 0.73%, which implies a short ratio of 0.84 days. The stock has gained 17.89% over the last year.

7. RPC Inc. (RES): Oil & Gas Equipment & Services Industry. Market cap of $2.59B. PEG at 0.92. Current Put/Call ratio at 0.16 vs. previous Put/Call ratio at 0.21 (23.81% change). Short float at 21.75%, which implies a short ratio of 6.76 days. The stock has gained 129.23% over the last year.

8. Honda Motor Co., Ltd. (HMC): Auto Manufacturers Industry. Market cap of $78.27B. PEG at 0.57. Current Put/Call ratio at 0.3 vs. previous Put/Call ratio at 0.35 (14.29% change). Short float at 0.02%, which implies a short ratio of 0.68 days. The stock has gained 25.28% over the last year.

9. Temple-Inland Inc. (TIN): Paper & Paper Products Industry. Market cap of $2.63B. PEG at 0.72. Current Put/Call ratio at 0.17 vs. previous Put/Call ratio at 0.19 (10.53% change). Short float at 2.5%, which implies a short ratio of 1.87 days. The stock has gained 49.42% over the last year.

10. Agnico-Eagle Mines Ltd. (AEM): Gold Industry. Market cap of $12.28B. PEG at 0.74. Current Put/Call ratio at 0.51 vs. previous Put/Call ratio at 0.57 (10.53% change). Short float at 4.69%, which implies a short ratio of 3.23 days. The stock has gained 44.73% over the last year.

Source: 10 Undervalued Stocks With Rising Call Volume