Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

If you believe that the options market predicts the spot market, this may be an interesting starting point for you own analysis. To compile this list, we looked for stocks that were trading at a significant discount to analysts’ target prices. Afterwards, we analyzed the options contracts for these names and focused on those that had experienced a significant increase in the outstanding call contracts over the last two weeks.

We also created a price-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.

Given this data, which of these stocks do you find more likely to grind higher?

1. Nash Finch Co. (NASDAQ:NAFC): Food Wholesale Industry. Market cap of $427.24M. This stock is trading at a discount of 25.3%, when comparing its current price of 35.11 vs. analysts' target price of 47. The Put/Call ratio dropped by 69.57%, from 1.15 to 0.35. The stock is a short squeeze candidate, with a short float at 6.72% (equivalent to 14.11 days of average volume). The stock has lost 5.64% over the last year.

2. AbitibiBowater Inc. Common Stoc (ABH): Paper & Paper Products Industry. Market cap of $2.54B. This stock is trading at a discount of 29.51%, when comparing its current price of 24.7 vs. analysts' target price of 35.04. The Put/Call ratio dropped by 33.98%, from 1.03 to 0.68. The stock has gained 0.% over the last year.

3. Cimarex Energy Co. (NYSE:XEC): Independent Oil & Gas Industry. Market cap of $7.80B. This stock is trading at a discount of 26.9%, when comparing its current price of 90.23 vs. analysts' target price of 123.44. The Put/Call ratio dropped by 28.17%, from 0.71 to 0.51. It's been a rough couple of days for the stock, losing 5.35% over the last week.

4. Enersis S.A. (NYSE:ENI): Foreign Utilities Industry. Market cap of $13.88B. This stock is trading at a discount of 28.55%, when comparing its current price of 21.45 vs. analysts' target price of 30.02. The Put/Call ratio dropped by 24.18%, from 0.91 to 0.69. The stock has gained 16.43% over the last year.

5. Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD): Heavy Construction Industry. Market cap of $369.91M. This stock is trading at a discount of 28.8%, when comparing its current price of 6.23 vs. analysts' target price of 8.75. The Put/Call ratio dropped by 23.08%, from 0.13 to 0.1. The stock is a short squeeze candidate, with a short float at 5.45% (equivalent to 6.02 days of average volume).

6. Marvell Technology Group Ltd. (NASDAQ:MRVL): Semiconductor Circuits Industry. Market cap of $8.99B. This stock is trading at a discount of 33.29%, when comparing its current price of 14.21 vs. analysts' target price of 21.3. The Put/Call ratio dropped by 20.0%, from 0.9 to 0.72. Might be undervalued at current levels, with a PEG ratio at 0.7, and P/FCF ratio at 8.32. The stock has lost 23.63% over the last year.

Relevant data sourced from Schaeffer's and Finviz.

Source: 6 Undervalued Stocks With Bullish Options Sentiment