Contrarian Momentum Ideas: Stocks Reaching 52-Week Highs With Bearish Options Sentiment

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 |  Includes: ASNA, CERN, DPL, EFX, GWR, HYC, MLI, PTEN, TPX
by: Kapitall

If you're a momentum investor looking for contrarian ideas, the following list might interest you.

The following companies have reached new 52-week highs during recent sessions. In addition, all of the names mentioned below have a large number of open put options relative to call options (i.e. significant bearish options sentiment).

Often times, technical-oriented traders interpret the Put/Call ratio as a contrary indicator. In other words, they might think these stocks are due to continue their rallies given the extremely high values of the Put/Call ratio.

Taking all this information into consideration, which of these stocks do you think will continue rallying? Full details below.

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.



List sorted by the Put/Call ratio.

1. Hypercom Corp. (NYSE:HYC): Business Equipment Industry. Market cap of $645.55M. Call open interest at 151 contracts vs. put open interest at 2,874, which is an equivalent to a Put/Call ratio of 19.03. Exhibiting strong upside momentum - currently trading 9.75% above its SMA20, 18.02% above its SMA50, and 76.8% above its SMA200. The stock has had a good month, gaining 15.31%.

2. Cerner Corp. (NASDAQ:CERN): Healthcare Information Services Industry. Market cap of $9.09B. Call open interest at 4,737 contracts vs. put open interest at 25,424, which is an equivalent to a Put/Call ratio of 5.37. The stock is a short squeeze candidate, with a short float at 11.88% (equivalent to 15.47 days of average volume). The stock has had a couple of great days, gaining 5.7% over the last week.

3. Mueller Industries Inc. (NYSE:MLI): Metal Fabrication Industry. Market cap of $1.36B. Call open interest at 119 contracts vs. put open interest at 490, which is an equivalent to a Put/Call ratio of 4.12. The stock has had a couple of great days, gaining 8.6% over the last week.

4. DPL Inc. (NYSE:DPL): Diversified Utilities Industry. Market cap of $3.14B. Call open interest at 105 contracts vs. put open interest at 370, which is an equivalent to a Put/Call ratio of 3.52. The stock is a short squeeze candidate, with a short float at 5.18% (equivalent to 8.54 days of average volume). The stock has gained 3.84% over the last year.

5. Equifax Inc. (NYSE:EFX): Credit Services Industry. Market cap of $4.62B. Call open interest at 143 contracts vs. put open interest at 430, which is an equivalent to a Put/Call ratio of 3.01. The stock has gained 5.49% over the last year.

6. Ascena Retail Group, Inc. (NASDAQ:ASNA): Apparel Stores Industry. Market cap of $2.48B. Call open interest at 3,188 contracts vs. put open interest at 8,502, which is an equivalent to a Put/Call ratio of 2.67. The stock is a short squeeze candidate, with a short float at 11.53% (equivalent to 8.65 days of average volume). The stock has gained 19.4% over the last year.

7. Tempur Pedic International Inc. (NYSE:TPX): Home Furnishings and Fixtures Industry. Market cap of $3.44B. Call open interest at 5,240 contracts vs. put open interest at 13,678, which is an equivalent to a Put/Call ratio of 2.61. The stock is a short squeeze candidate, with a short float at 9.61% (equivalent to 6.44 days of average volume). The stock has had a good month, gaining 10.73%.

8. Patterson-UTI Energy Inc. (NASDAQ:PTEN): Oil and Gas Drilling and Exploration Industry. Market cap of $4.37B. Call open interest at 7,478 contracts vs. put open interest at 19,178, which is an equivalent to a Put/Call ratio of 2.56. The stock has had a couple of great days, gaining 5.59% over the last week.

9. Genesee & Wyoming Inc. (NYSE:GWR): Railroads Industry. Market cap of $2.41B. Call open interest at 1,209 contracts vs. put open interest at 2,618, which is an equivalent to a Put/Call ratio of 2.17. The stock has had a couple of great days, gaining 6.17% over the last week.

*Options data sourced from Shaeffer’s, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.