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

Interested in short seller activity? The following list of short squeeze stocks have seen a significant decrease in short seller activity in the last month, implying they believe the value of these names will soon rise...

To create the list we searched for stocks with the following features:

- Market cap above $300M
- P/FCF between 5 and 10
- PEG between 0.6 and 1.

From there we took the companies with the greatest decrease in shares shorted relative to their float in the last 30 days. The resulting 9 stocks are detailed below.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.


Given this information, do you think the list of stocks below will rally? Use this list as a starting point for your own analysis.

1. Community Health Systems, Inc. (NYSE:CYH): Hospitals Industry. Market cap of $2.65B. Shares shorted dropped from 12.14M last month to 9.88M this month. This change is equivalent to 2.55% of the 88.65M share float. Might be undervalued at current levels, with a PEG ratio at 0.72, and P/FCF ratio at 6.93. The stock has lost 30.23% over the last year.

2. Janus Capital Group, Inc. (NYSE:JNS): Asset Management Industry. Market cap of $1.82B. Shares shorted dropped from 16.21M last month to 12.32M this month. This change is equivalent to 2.16% of the 179.70M share float. PEG ratio at 0.89, and P/FCF ratio at 7.2. This is a risky stock that is significantly more volatile than the overall market (beta = 2.68). The stock has performed poorly over the last month, losing 19.69%.

3. Textron Inc. (NYSE:TXT): Conglomerates Industry. Market cap of $6.17B. Shares shorted dropped from 23.19M last month to 20.96M this month. This change is equivalent to 0.81% of the 275.66M share float. PEG ratio at 0.96, and P/FCF ratio at 7.78. This is a risky stock that is significantly more volatile than the overall market (beta = 2.76). The stock is a short squeeze candidate, with a short float at 7.59% (equivalent to 5.29 days of average volume). The stock has performed poorly over the last month, losing 13.86%.

4. AMERIGROUP Corporation (AGP): Health Care Plans Industry. Market cap of $3.43B. Shares shorted dropped from 5.60M last month to 5.22M this month. This change is equivalent to 0.78% of the 48.42M share float. PEG ratio at 0.78, and P/FCF ratio at 7.49. The stock is a short squeeze candidate, with a short float at 10.59% (equivalent to 7.03 days of average volume). The stock has gained 86.45% over the last year.

5. Marvell Technology Group Ltd. (NASDAQ:MRVL): Semiconductor Industry. Market cap of $9.61B. Shares shorted dropped from 12.86M last month to 8.99M this month. This change is equivalent to 0.73% of the 531.28M share float. Might be undervalued at current levels, with a PEG ratio at 0.74, and P/FCF ratio at 8.9. The stock has had a couple of great days, gaining 10.63% over the last week.

6. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $21.12B. Shares shorted dropped from 31.34M last month to 29.05M this month. This change is equivalent to 0.49% of the 465.53M share float. PEG ratio at 0.62, and P/FCF ratio at 8.75. It's been a rough couple of days for the stock, losing 6.52% over the last week.

7. Amedisys Inc. (NASDAQ:AMED):
Home Health Care Industry. Market cap of $910.62M. Shares shorted dropped from 6.41M last month to 6.30M this month. This change is equivalent to 0.38% of the 28.89M share float. PEG ratio at 0.72, and P/FCF ratio at 7.77. The stock is a short squeeze candidate, with a short float at 21.71% (equivalent to 17.88 days of average volume). The stock has lost 38.1% over the last year.

8. Sauer-Danfoss Inc. (NYSE:SHS):
Diversified Machinery Industry. Market cap of $2.44B. Shares shorted dropped from 456.15K last month to 414.75K this month. This change is equivalent to 0.36% of the 11.58M share float. Might be undervalued at current levels, with a PEG ratio at 0.66, and P/FCF ratio at 9.3. This is a risky stock that is significantly more volatile than the overall market (beta = 2.07). The stock has performed poorly over the last month, losing 14.68%.

9. SanDisk Corp. (NASDAQ:SNDK): Semiconductor Industry. Market cap of $10.75B. Shares shorted dropped from 8.46M last month to 7.74M this month. This change is equivalent to 0.31% of the 234.49M share float. PEG ratio at 0.67, and P/FCF ratio at 7.71. The stock has lost 2.84% over the last year.

*Shorts data sourced from Yahoo Finance, rest of 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: 9 Undervalued Stocks With Significant Short Covering Over the Last Month