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If you're interested in contrarian ideas, this may be an interesting starting point for your own analysis.

To construct this list we looked for stocks with price to free cash flow (P/FCF) below 10, and that had experienced a significant increase in the outstanding put contracts over the last two weeks (i.e. bearish options sentiment).

We last wrote about this screen on April 6. On that day, the screen produced 7 companies. Since then, 5 out of 7 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 71.00%). The screen averaged a price-weighted return of 5.3% vs. an index return of 0.5%. Click here to access a full breakdown of the screen's past performance.

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With past performance in mind, we decided to run the same screen today, and see which companies show up in the update. Here's the updated list:

1. Molina Healthcare Inc. (NYSE:MOH): Health Care Plans Industry. Market cap of $1.29B. P/FCF at 6.04. The Put/Call ratio increased by 170.45%, from 0.44 to 1.19. The stock is a short squeeze candidate, with a short float at 9.3% (equivalent to 5.34 days of average volume). The stock has gained 48.08% over the last year.

2. PharMerica Corporation (NYSE:PMC):
Drug Stores Industry. Market cap of $384.32M. P/FCF at 5.81. The Put/Call ratio increased by 50.82%, from 1.22 to 1.84. The stock is a short squeeze candidate, with a short float at (equivalent to days of average volume). The stock has lost 27.68% over the last year.

3. CACI International Inc. (NYSE:CACI): Technical Services Industry. Market cap of $1.91B. P/FCF at 6.68. The Put/Call ratio increased by 50.0%, from 0.76 to 1.14. The stock is a short squeeze candidate, with a short float at 10.03% (equivalent to 12.6 days of average volume). The stock has had a couple of great days, gaining 5.3% over the last week.

4. Lender Processing Services, Inc. (NYSE:LPS):
Business Services Industry. Market cap of $2.49B. P/FCF at 7.93. The Put/Call ratio increased by 49.69%, from 1.63 to 2.44. The stock is a short squeeze candidate, with a short float at 5.64% (equivalent to 5.23 days of average volume). The stock has lost 19.92% over the last year.

5. General Communication Inc. (NASDAQ:GNCMA): Long Distance Carriers Industry. Market cap of $540.78M. P/FCF at 7.69. The Put/Call ratio increased by 39.86%, from 1.43 to 2. The stock has gained 89.98% over the last year.

6. Education Management Corporation (NASDAQ:EDMC):
Education & Training Services Industry. Market cap of $1.55B. P/FCF at 7.49. The Put/Call ratio increased by 34.57%, from 0.81 to 1.09. Might be undervalued at current levels, with a PEG ratio at 0.77, and P/FCF ratio at 7.49. The stock is a short squeeze candidate, with a short float at 6.82% (equivalent to 21.98 days of average volume).

7. Republic Bancorp Inc. (NASDAQ:RBCAA):
Regional Banks Industry. Market cap of $422.36M. P/FCF at 3.04. The Put/Call ratio increased by 33.25%, from 4 to 5.33. It's been a rough couple of days for the stock, losing 7.26% over the last week.

8. Cincinnati Bell Inc. (NYSE:CBB): Telecom Services Industry. Market cap of $652.03M. P/FCF at 5.98. The Put/Call ratio increased by 31.2%, from 6.41 to 8.41. The stock is a short squeeze candidate, with a short float at (equivalent to days of average volume). The stock has had a couple of great days, gaining 13.1% over the last week.

9. Collective Brands, Inc. (NYSE:PSS): Apparel Stores Industry. Market cap of $1.17B. P/FCF at 6.75. The Put/Call ratio increased by 30.61%, from 0.98 to 1.28. Might be undervalued at current levels, with a PEG ratio at 0.93, and P/FCF ratio at 6.75. The stock is a short squeeze candidate, with a short float at 14.1% (equivalent to 8.84 days of average volume). The stock has performed poorly over the last month, losing 12.36%.

10. Kohlberg Kravis Roberts & Co. (NYSE:KKR): Asset Management Industry. Market cap of $3.79B. P/FCF at 1.79. The Put/Call ratio increased by 25.61%, from 0.82 to 1.03. Might be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 1.79. After a solid performance over the last year, KKR has pulled back during recent sessions. The stock is -5.93% below its SMA20 and -3.03% below its SMA50, but remains 24.18% above its SMA200.

*Options data sourced from Schaeffer’s, 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: Contrarian Ideas: 10 Low P/FCF Stocks With Bearish Options