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If you are looking for potential short candidates, this list may be an interesting starting point.

To compile this list we looked for U.S. based stocks with market cap above $300M and within the consumer goods sector. We then analyzed the growth trends for revenue and accounts receivables for each of these candidates, and kept those stocks that had seen receivables grow faster than revenue - on a year-to-year basis.



Whenever accounts receivable take up an increasingly larger portion of revenue, the quality of revenue is considered lower. This is because accounts receivable is an accrual (as opposed to cash), which is subject to management’s discretion.

However, such increases in accounts receivable could be due to structural changes in the business, such as a new credit policy or an acquisition. There may be several explanations for these trends, but whenever accounts receivable growth exceeds revenue growth, it flags the investor to take a second look.

With that said, which of these companies are you most bearish about?

1. Commercial Vehicle Group Inc. (NASDAQ:CVGI): Auto Parts Industry. Market cap of $496.74M. MRQ Revenue grew by 24.66% on a y/y basis, while accounts receivable grew by 45.42%. Accounts receivable, as a percentage of current assets, increased from 42.06% to 54.04%. This is a risky stock that is significantly more volatile than the overall market (beta = 3.31). The stock has gained 84.4% over the last year.



2. Universal Electronics Inc. (NASDAQ:UEIC): Electronic Equipment Industry. Market cap of $414.80M. MRQ Revenue grew by 20.67% on a y/y basis, while accounts receivable grew by 34.03%. Accounts receivable, as a percentage of current assets, increased from 34.06% to 40.18%. The stock has gained 30.49% over the last year.



3. True Religion Apparel Inc. (NASDAQ:TRLG): Apparel Clothing Industry. Market cap of $760.03M. MRQ Revenue grew by 20.41% on a y/y basis, while accounts receivable grew by 33.27%. Accounts receivable, as a percentage of current assets, increased from 10.36% to 10.83%. The stock is a short squeeze candidate, with a short float at 16.5% (equivalent to 8.93 days of average volume). Exhibiting strong upside momentum--currently trading 14.88% above its SMA20, 24.54% above its SMA50, and 36.94% above its SMA200. The stock has had a couple of great days, gaining 13.61% over the last week.



4. Universal Corp. (NYSE:UVV): Tobacco Products. Market cap of $1.02B. MRQ Revenue grew by 4.08% on a y/y basis, while accounts receivable grew by 16.31%. Accounts receivable, as a percentage of current assets, increased from 18.46% to 19.77%. The stock is a short squeeze candidate, with a short float at 11.98% (equivalent to 11.55 days of average volume). The stock has lost 12.28% over the last year.

5. Generac Holdings Inc. (NYSE:GNRC): Electronic Equipment Industry. Market cap of $1.41B. MRQ Revenue grew by 4.6% on a y/y basis, while accounts receivable grew by 16.66%. Accounts receivable, as a percentage of current assets, increased from 15.69% to 23.17%. The stock has gained 37.97% over the last year.

6. International Paper Co. (NYSE:IP):
Paper & Paper Products Industry. Market cap of $13.50B. MRQ Revenue grew by 9.99% on a y/y basis, while accounts receivable grew by 19.57%. Accounts receivable, as a percentage of current assets, increased from 37.98% to 40.39%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.4%, current ratio at 1.89, and quick ratio at 1.36. Exhibiting strong upside momentum--currently trading 7.37% above its SMA20, 13.19% above its SMA50, and 25.12% above its SMA200. The stock has gained 18.04% over the last year.

7. Silgan Holdings Inc. (NASDAQ:SLGN): Packaging & Containers Industry. Market cap of $3.21B. MRQ Revenue grew by 0.89% on a y/y basis, while accounts receivable grew by 9.09%. Accounts receivable, as a percentage of current assets, increased from 21.5% to 24.81%. Exhibiting strong upside momentum--currently trading 7.98% above its SMA20, 17.43% above its SMA50, and 32.66% above its SMA200. The stock has had a good month, gaining 21.16%.

8. Myers Industries Inc. (NYSE:MYE): Rubber & Plastics Industry. Market cap of $376.86M. MRQ Revenue grew by 3.77% on a y/y basis, while accounts receivable grew by 11.51%. Accounts receivable, as a percentage of current assets, increased from 46.84% to 48.29%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.38). The stock has gained 1.52% over the last year.

9. Diamond Foods, Inc. (NASDAQ:DMND): Processed & Packaged Goods Industry. Market cap of $1.44B. MRQ Revenue grew by 39.87% on a y/y basis, while accounts receivable grew by 47.47%. Accounts receivable, as a percentage of current assets, increased from 23.45% to 24.9%. Relatively low correlation to the market (beta = 0.49), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 28.38% (equivalent to 21.22 days of average volume). Exhibiting strong upside momentum--currently trading 6.49% above its SMA20, 17.16% above its SMA50, and 33.87% above its SMA200. The stock has had a couple of great days, gaining 7.34% over the last week.

10. Seaboard Corp. (NYSEMKT:SEB): Meat Products Industry. Market cap of $2.91B. MRQ Revenue grew by 25.63% on a y/y basis, while accounts receivable grew by 32.99%. Accounts receivable, as a percentage of current assets, increased from 18.99% to 24.23%. The stock has gained 64.2% over the last year.

11. Avid Technology Inc. (OTCPK:AVID): Photographic Equipment & Supplies Industry. Market cap of $713.29M. MRQ Revenue grew by 6.64% on a y/y basis, while accounts receivable grew by 13.79%. Accounts receivable, as a percentage of current assets, increased from 32.01% to 34.06%. The stock is a short squeeze candidate, with a short float at 10.69% (equivalent to 16.66 days of average volume). After a solid performance over the last year, AVID has pulled back during recent sessions. The stock is -12.34% below its SMA20 and -15.45% below its SMA50, but remains 10.27% above its SMA200. The stock has performed poorly over the last month, losing 16.61%.

12. Jarden Corp. (NYSE:JAH): Housewares & Accessories Industry. Market cap of $3.23B. MRQ Revenue grew by 24.75% on a y/y basis, while accounts receivable grew by 30.57%. Accounts receivable, as a percentage of current assets, increased from 27.23% to 33.69%. The stock has gained 14.54% over the last year.

13. Polo Ralph Lauren Corp. (NYSE:RL): Apparel Clothing Industry. Market cap of $12.58B. MRQ Revenue grew by 24.45% on a y/y basis, while accounts receivable grew by 28.6%. Accounts receivable, as a percentage of current assets, increased from 11.19% to 13.45%. The stock has gained 46.19% over the last year.

14. Sealed Air Corporation (NYSE:SEE): Packaging & Containers Industry. Market cap of $4.12B. MRQ Revenue grew by 6.34% on a y/y basis, while accounts receivable grew by 8.51%. Accounts receivable, as a percentage of current assets, increased from 31.51% to 32.8%. The stock has gained 22.6% over the last year.

15. American Axle & Manufacturing Holdings Inc. (NYSE:AXL): Auto Parts Industry. Market cap of $963.84M. MRQ Revenue grew by 23.7% on a y/y basis, while accounts receivable grew by 25.72%. Accounts receivable, as a percentage of current assets, increased from 32.25% to 32.58%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.42). The stock has gained 18.96% over the last year.

16. Harley-Davidson, Inc. (NYSE:HOG): Recreational Vehicles Industry. Market cap of $8.76B. MRQ Revenue grew by 1.47% on a y/y basis, while accounts receivable grew by 2.31%. Accounts receivable, as a percentage of current assets, increased from 30.65% to 37.75%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.28). After a solid performance over the last year, HOG has pulled back during recent sessions. The stock is -4.01% below its SMA20 and -6.07% below its SMA50, but remains 11.99% above its SMA200. The stock has performed poorly over the last month, losing 11.91%.

17. Arctic Cat Inc. (NASDAQ:ACAT): Recreational Vehicles Industry. Market cap of $306.92M. MRQ Revenue grew by 15.98% on a y/y basis, while accounts receivable grew by 16.72%. Accounts receivable, as a percentage of current assets, increased from 19.48% to 19.57%. Exhibiting strong upside momentum--currently trading 5.09% above its SMA20, 13.28% above its SMA50, and 28.29% above its SMA200. The stock has gained 13.83% over the last year.

18. Leggett & Platt, Incorporated (NYSE:LEG): Home Furnishings & Fixtures Industry. Market cap of $3.83B. MRQ Revenue grew by 9.73% on a y/y basis, while accounts receivable grew by 9.87%. Accounts receivable, as a percentage of current assets, increased from 40.95% to 44.61%. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.11%, current ratio at 2.33, and quick ratio at 1.5. Exhibiting strong upside momentum--currently trading 10.18% above its SMA20, 11.39% above its SMA50, and 19.66% above its SMA200. The stock has had a couple of great days, gaining 11.26% over the last week.

*Financial data sourced from Google Finance, other relevant 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.

Source: Revenue Flags: 18 Consumer Goods Stocks With Rapidly Rising Receivables