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

The following is a list of breakout stocks, based on moving average trends. For this article, we tracked down stocks that have recently seen the 50-day simple moving average (SMA50) move above the 200-day moving average (SMA200) - a bullish technical signal called the "Golden Cross."

In addition, all of these stocks have seen a recent decrease in the Put/Call ratio, which is based on open interest of option contracts. (Note: The Put/Call ratios of these companies are at the lower end of their annual ranges.)

With the number of call option contracts growing so rapidly relative to put option contracts, do you think these stocks are set for a rally? 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 Feb 17 - March 3.)

Click for expanded images



The list has been sorted by the change in the Put/Call ratio.

1. Pike Electric Corporation (NYSE:PIKE): General Contractors Industry. Market cap of $335.66M. SMA50 at $8.92 vs. SMA200 at $8.45 (current price at $9.97). Current Put/Call ratio at 0.1 vs. previous Put/Call ratio at 0.45 (-77.78% change). Exhibiting strong upside momentum - currently trading 6.71% above its SMA20, 11.76% above its SMA50, and 17.97% above its SMA200. The stock has had a couple of great days, gaining 7.53% over the last week.

2. Given Imaging Ltd. (GIVN): Medical Appliances and Equipment Industry. Market cap of $526.50M. SMA50 at $17.27 vs. SMA200 at $16.48 (current price at $19.38). Current Put/Call ratio at 0.21 vs. previous Put/Call ratio at 0.85 (-75.29% change). The stock has had a good month, gaining 11.93%.

3. Affymetrix Inc. (NASDAQ:AFFX):
Scientific and Technical Instruments Industry. Market cap of $352.49M. SMA50 at $5.05 vs. SMA200 at $4.94 (current price at $5.12). Current Put/Call ratio at 0.15 vs. previous Put/Call ratio at 0.54 (-72.22% change). This is a risky stock that is significantly more volatile than the overall market (beta = 2.19). The stock is also a short squeeze candidate, with a short float at 14.62% (equivalent to 12.48 days of average volume).

4. Hillenbrand, Inc. (NYSE:HI):
Personal Services Industry. Market cap of $1.35B. SMA50 at $21.6 vs. SMA200 at $21.07 (current price at $21.93). Current Put/Call ratio at 0.34 vs. previous Put/Call ratio at 0.59 (-42.37% change). The stock has gained 5.66% over the last year.

5. Plexus Corp. (NASDAQ:PLXS)
: Printed Circuit Boards Industry. Market cap of $1.19B. SMA50 at $29.70 vs. SMA200 at $29.23 (current price at $30.21). Current Put/Call ratio at 0.35 vs. previous Put/Call ratio at 0.59 (-40.68% change). The stock is a short squeeze candidate, with a short float at 5.9% (equivalent to 6.51 days of average volume). The stock has lost 17.73% over the last year.

6. DeVry, Inc. (NYSE:DV): Education and Training Services Industry. Market cap of $3.70B. SMA50 at $50.24 vs. SMA200 at $48.80 (current price at $54.29). Current Put/Call ratio at 0.67 vs. previous Put/Call ratio at 1.1 (-39.09% change). Relatively low correlation to the market (beta = 0.55), which may be appealing to risk averse investors. Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 14.17. The stock has lost 16.51% over the last year.

7. Constellation Energy Group, Inc. (NYSE:CEG): Electric Utilities Industry. Market cap of $6.10B. SMA50 at $31.45 vs. SMA200 at $31.28 (current price at $30.7). Current Put/Call ratio at 0.11 vs. previous Put/Call ratio at 0.18 (-38.89% change). Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 3.14%, current ratio at 1.97, and quick ratio at 1.83. The stock has lost 11.3% over the last year.

8. PharMerica Corporation (NYSE:PMC): Drug Stores Industry. Market cap of $369.01M. SMA50 at $12.05 vs. SMA200 at $11.69 (current price at $12.95). Current Put/Call ratio at 0.05 vs. previous Put/Call ratio at 0.07 (-28.57% change). Relatively low correlation to the market (beta = 0.59), which may be appealing to risk averse investors. The stock is also a short squeeze candidate, with a short float at 7.77% (equivalent to 7.08 days of average volume).

9. Amedisys Inc. (NASDAQ:AMED): Home Health Care Industry. Market cap of $1.05B. SMA50 at $34.31 vs. SMA200 at $31.76 (current price at $35.88). Current Put/Call ratio at 0.91 vs. previous Put/Call ratio at 1.05 (-13.33% change). Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 7.53. The stock has lost 40.07% over the last year.

10. Big Lots Inc. (NYSE:BIG): Discount, Variety Stores Industry. Market cap of $3.01B. SMA50 at $34.46 vs. SMA200 at $33.03 (current price at $41.11). Current Put/Call ratio at 0.45 vs. previous Put/Call ratio at 0.5 (-10.% change). The stock has had a good month, gaining 25.48%.

11. ManTech International Corporation (NASDAQ:MANT): Security Software and Services Industry. Market cap of $1.58B. SMA50 at $41.21 vs. SMA200 at $40.64 (current price at $43.69). Current Put/Call ratio at 0.45 vs. previous Put/Call ratio at 0.5 (-10.00% change). The stock has had a couple of great days, gaining 5.14% over the last week.

12. General Mills Inc. (NYSE:GIS):
Processed and Packaged Goods Industry. Market cap of $23.42B. SMA50 at $35.86 vs. SMA200 at $35.73 (current price at $36.87). Current Put/Call ratio at 0.41 vs. previous Put/Call ratio at 0.44 (-6.82% change). The stock has gained 4.07% 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: Momentum Ideas: Breakout Stocks With Rising Call Volume