Momentum Ideas: 7 Stocks Seeing Short Covering Reaching New Highs

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 |  Includes: HTZ, LXU, NSM, NUAN, TLRD, VHI, VRSN
by: Kapitall

Looking for bullish momentum opportunities? Here are a few ideas for your search.

Below we present a list of 7 stocks that having recently hit their 52-week high. These stocks have also seen significant decreases in the number of shares shorted month-over-month, indicating bullish sentiment. The number of shares is presented below as a percentage of share float.

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Do you think the momentum will continue for these stocks? Use this list as a starting-off point for your own analysis.

List sorted by decrease in shares shorted as a percent of share float.

We also created an equal weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

1. Valhi, Inc. (NYSE:VHI): Synthetics Industry. Market cap of $3.62B. Shares shorted have decreased from 118.59K to 87.82K month-over-month, which is a 11.40% decrease of a 269.85K share float. The stock is exhibiting strong upside momentum--currently trading 9.48% above its SMA20, 25.41% above its SMA50, and 54.3% above its SMA200. The stock has had a good month, gaining 10.58%.

2. VeriSign Inc. (NASDAQ:VRSN): Application Software Industry. Market cap of $5.99B. Shares shorted have decreased from 8.80M to 5.84M month-over-month, which is a 1.89% decrease of a 156.38M share float. The stock has gained 54.25% over the last year.

3. The Men's Wearhouse, Inc. (MW): Apparel Stores Industry. Market cap of $1.69B. Shares shorted have decreased from 5.51M to 4.96M month-over-month, which is a 1.15% decrease of a 48.02M share float. The stock is a short squeeze candidate, with a short float at 10.27% (equivalent to 6.81 days of average volume). The stock is exhibiting strong upside momentum--currently trading 19.18% above its SMA20, 22.34% above its SMA50, and 33.9% above its SMA200. The stock has had a couple of great days, gaining 17.78% over the last week.

4. Hertz Global Holdings, Inc. (NYSE:HTZ): Rental & Leasing Services Industry. Market cap of $6.99B. Shares shorted have decreased from 35.73M to 33.08M month-over-month, which is a 0.90% decrease of a 293.01M share float. This is a risky stock that is significantly more volatile than the overall market (beta = 2.44). The stock is a short squeeze candidate, with a short float at 8.1% (equivalent to 6.42 days of average volume). The stock has gained 40.3% over the last year.

5. National Semiconductor Corporation (NSM): Semiconductor Industry. Market cap of $5.89B. Shares shorted have decreased from 9.76M to 7.80M month-over-month, which is a 0.83% decrease of a 237.26M share float. The stock has gained 79.84% over the last year.

6. Nuance Communications, Inc. (NASDAQ:NUAN): Application Software Industry. Market cap of $6.04B. Shares shorted have decreased from 18.08M to 16.27M month-over-month, which is a 0.78% decrease of a 232.06M share float. The stock is a short squeeze candidate, with a short float at 5.46% (equivalent to 6.86 days of average volume). NUAN is exhibiting strong upside momentum--currently trading 9.92% above its SMA20, 15.86% above its SMA50, and 24.01% above its SMA200. The stock has gained 22.35% over the last year.

7. LSB Industries Inc. (NYSE:LXU): General Building Materials Industry. Market cap of $963.10M. Shares shorted have decreased from 583.73K to 502.58K month-over-month, which is a 0.53% decrease of a 15.42M share float. The stock is exhibiting strong upside momentum--currently trading 15.22% above its SMA20, 20.56% above its SMA50, and 72.78% above its SMA200. The stock has had a couple of great days, gaining 7.86% over the last week.

*Short data sourced from Yahoo! Finance, 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.