7 Stocks With Low P/FCF Ratios, And Increasing Put/Call Ratios

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 |  Includes: ALK, BYD, CBB, HTZ, NBGGY, NLY, SKYW
by: Kapitall

The following is a list of stocks that are generating more than a fifth of its market cap in free cash flow, which makes them very attractive in terms of their valuation. Curiously enough, all of these names have recently experienced a bearish shift in sentiment in the options market, i.e. the number of put open interest for these stocks is now bigger than the call open interest.

Given that free cash flow makes up more than 20% of each company's valuation and that the options markets seems to be extremely bearish about these names, which of these stocks offers the most compelling argument for long only investors?



Insider data sourced from Yahoo! Finance, short float and performance data sourced from Finviz. (Note: All Put/Call changes occur over the last two weeks)

1. Cincinnati Bell Inc. (NYSE:CBB): Telecom Services Industry. Market cap of $550.65M. P/FCF at 3.94. The Put/Call ratio increased by 668.6%, from 0.86 to 6.61. The stock is a short squeeze candidate, with a short float at 7.08% (equivalent to 8.58 days of average volume). The stock has had a couple of great days, gaining 8.63% over the last week.



2. SkyWest Inc. (NASDAQ:SKYW): Regional Airlines Industry. Market cap of $870.0M. P/FCF at 4.66. The Put/Call ratio increased by 328.89%, from 0.45 to 1.93. The stock has gained 14.51% over the last year.

3. Hertz Global Holdings, Inc. (NYSE:HTZ): Rental & Leasing Services Industry. Market cap of $6.62B. P/FCF at 3.26. The Put/Call ratio increased by 103.33%, from 0.6 to 1.22. The stock is a short squeeze candidate, with a short float at 7.7% (equivalent to 6.29 days of average volume). The stock has gained 37.46% over the last year.

4. Annaly Capital Management, Inc. (NYSE:NLY)
: REIT Industry. Market cap of $14.04B. P/FCF at 1.52. The Put/Call ratio increased by 66.67%, from 0.66 to 1.1. The stock has gained 17.58% over the last year.



5. National Bank of Greece SA (NBG): Money Center Banks Industry. Market cap of $5.09B. P/FCF at 2.27. The Put/Call ratio increased by 66.3%, from 0.92 to 1.53. This is a risky stock that is significantly more volatile than the overall market (beta = 2.09). It's been a rough couple of days for the stock, losing 5.49% over the last week.

6. Boyd Gaming Corp. (NYSE:BYD): Resorts & Casinos Industry. Market cap of $846.31M. P/FCF at 4.28. The Put/Call ratio increased by 25.56%, from 0.9 to 1.13. The stock is a short squeeze candidate, with a short float at 31.53% (equivalent to 6.72 days of average volume). The stock has had a couple of great days, gaining 7.33% over the last week.



7. Alaska Air Group, Inc. (NYSE:ALK): Regional Airlines Industry. Market cap of $2.24B. P/FCF at 4.4. The Put/Call ratio increased by 16.33%, from 0.98 to 1.14. The stock has gained 56.37% 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.