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For those looking to increase large-cap holdings, this article will provide you with an interesting list of undervalued companies that options traders seem to be betting on.

To construct this list we looked for stocks with market caps above $10B and PEG ratios below 1, which generally signals undervalued conditions. We then sorted through each of these names’ outstanding options contracts and focused on those that experienced a significant bullish shift over the last two week. This implies a significant decrease of the Put/Call ratio.

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.



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.


Considering this information, which of these large-caps do you think has the most upside potential moving forward?

1. Brasil Foods S.A. (NYSE:BRFS):
Meat Products Industry. Market cap of $13.69B. PEG at 0.54. The Put/Call ratio decreased by 91.3%, from 2.53 to 0.22. It's been a rough couple of days for the stock, losing 6.59% over the last week.

2. Ecopetrol SA (NYSE:EC): Independent Oil & Gas Industry. Market cap of $87.28B. PEG at 0.82. The Put/Call ratio decreased by 37.31%, from 0.67 to 0.42. It's been a rough couple of days for the stock, losing 5.99% over the last week.

3. Peabody Energy Corp. (NYSE:BTU): Industrial Metals & Minerals Industry. Market cap of $14.57B. PEG at 0.76. The Put/Call ratio decreased by 21.18%, from 0.85 to 0.67. The stock is currently stuck in a downtrend, trading -6.48% below its SMA20, -12.52% below its SMA50, and -9.49% below its SMA200. The stock has gained 31.19% over the last year.

4. Wells Fargo & Company (NYSE:WFC):
Money Center Banks Industry. Market cap of $140.43B. PEG at 0.98. The Put/Call ratio decreased by 18.45%, from 1.03 to 0.84. The stock has lost 4.7% over the last year.

5. CRH plc (NYSE:CRH):
Cement Industry. Market cap of $14.50B. PEG at 0.68. The Put/Call ratio decreased by 15.24%, from 1.05 to 0.89. The stock has performed poorly over the last month, losing 10.93%.

6. Vale S.A. (NYSE:VALE): Steel & Iron Industry. Market cap of $157.85B. PEG at 0.45. The Put/Call ratio decreased by 14.89%, from 0.94 to 0.8. The stock has gained 13.68% over the last year.

7. Intel Corporation (NASDAQ:INTC):
Semiconductor Industry. Market cap of $113.57B. PEG at 0.9. The Put/Call ratio decreased by 10.2%, from 0.98 to 0.88. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.92%, current ratio at 1.97, and quick ratio at 1.62. The stock has gained 2.88% over the last year.

8. Citigroup, Inc. (NYSE:C): Money Center Banks Industry. Market cap of $110.98B. PEG at 0.93. The Put/Call ratio decreased by 9.26%, from 0.54 to 0.49. This is a risky stock that is significantly more volatile than the overall market (beta = 2.53). The stock has lost 4.74% over the last year.

9. CNOOC Ltd. (NYSE:CEO):
Independent Oil & Gas Industry. Market cap of $103.31B. PEG at 0.54. The Put/Call ratio decreased by 7.69%, from 1.04 to 0.96. The stock has gained 36.39% over the last year.

10. General Motors Company (NYSE:GM): Auto Manufacturers Industry. Market cap of $45.18B. PEG at 0.45. The Put/Call ratio decreased by 7.41%, from 0.54 to 0.5. The stock has gained 0.% over the last year.

*Data sourced from Schaeffer’s and Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 10 Undervalued Large-Cap Stocks With Bullish Options Sentiment