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Here we report 14 stocks about which the market has been deeply pessimistic recently. Contrarian investors may want to pay attention.

These stocks have seen great selling pressure and are technically oversold, with RSI(14) below 40. They also have very high put/call ratios (above 2), indicating pessimism from options traders as well.

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.

(Click chart to enlarge)

Do you think these stocks can rally off of this extreme pessimism? Use this list as a starting-off point for your own analysis.

List sorted by put/call ratio.

1. Lender Processing Services, Inc. (NYSE:LPS): Business Services Industry. Market cap of $1.81B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 32.27. Put/call ratio at 15.11. The stock might be undervalued at current levels, with a PEG ratio at 0.78, and P/FCF ratio at 5.76. The stock has performed poorly over the last month, losing 21.37%.

2. Sun Healthcare Group Inc. (NASDAQ:SUNH): Long-Term Care Facilities Industry. Market cap of $598.40M. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 20.68. Put/call ratio at 11.50. The stock might be undervalued at current levels, with a PEG ratio at 0.88, and P/FCF ratio at 8.94. The stock has performed poorly over the last month, losing 19.76%.

3. TrustCo Bank Corp. NY (NASDAQ:TRST): Regional Banks Industry. Market cap of $385.30M. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 32.82. Put/call ratio at 8.40. The stock is a short squeeze candidate, with a short float at 7.17% (equivalent to 24.94 days of average volume). The stock has performed poorly over the last month, losing 14.87%.

4. VimpelCom Ltd. (NASDAQ:VIP): Wireless Communications Industry. Market cap of $16.74B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 34.26. Put/call ratio at 5.82. The stock has lost 18.62% over the last year.

5. Ferrellgas Partners LP (NYSE:FGP): Oil & Gas Refining & Marketing Industry. Market cap of $1.72B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 34.09. Put/call ratio at 5.36. The stock has performed poorly over the last month, losing 12.01%.

6. Fibria Celulose SA (NYSE:FBR): Paper & Paper Products Industry. Market cap of $6.22B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 37.71. Put/call ratio at 4.75. This is a risky stock that is significantly more volatile than the overall market (beta = 2.65). The stock has performed poorly over the last month, losing 14.64%.

7. Niska Gas Storage Partners LLC (NYSE:NKA): Gas Utilities Industry. Market cap of $1.14B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 39.13. Put/call ratio at 3.37. The stock has performed poorly over the last month, losing 12.93%.

8. Sterling Financial Corp. (NASDAQ:STSA): Savings & Loans Industry. Market cap of $1.0B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 26.99. Put/call ratio at 2.89. This is a risky stock that is significantly more volatile than the overall market (beta = 2.22). It's been a rough couple of days for the stock, losing 6.9% over the last week.

9. AbitibiBowater Inc. Common Stoc (ABH): Paper & Paper Products Industry. Market cap of $1.95B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 26.62. Put/call ratio at 2.47. The stock is a short squeeze candidate, with a short float at 6.94% (equivalent to 7.83 days of average volume). It's been a rough couple of days for the stock, losing 9.28% over the last week.

10. TFS Financial Corp (NASDAQ:TFSL): Regional Banks Industry. Market cap of $2.93B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 35.52. Put/call ratio at 2.34. The stock has lost 23.53% over the last year.

11. Aixtron SE (NASDAQ:AIXG): Diversified Machinery Industry. Market cap of $3.46B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 38.32. Put/call ratio at 2.23. This is a risky stock that is significantly more volatile than the overall market (beta = 2.68). The stock is a short squeeze candidate, with a short float at 5.3% (equivalent to 21.23 days of average volume). The stock has performed poorly over the last month, losing 14.38%.

12. Corcept Therapeutics Inc. (NASDAQ:CORT): Biotechnology Industry. Market cap of $356.87M. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 32.25. Put/call ratio at 2.05. The stock has performed poorly over the last month, losing 13.97%.

13. KBW Inc (NYSE:KBW): Asset Management Industry. Market cap of $667.68M. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 33.66. Put/call ratio at 2.03. The stock is a short squeeze candidate, with a short float at 5.85% (equivalent to 10.66 days of average volume). The stock has performed poorly over the last month, losing 12.87%.

14. Tele Norte Leste Participacoes S.A. (NYSE:TNE): Telecom Services Industry. Market cap of $7.28B. Using the RSI(14) as an indicator, the stock appears to be oversold at a level of 38.22. Put/call ratio at 2.00. The stock offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 3.28%, current ratio at 1.36, and quick ratio at 1.35. The stock has performed poorly over the last month, losing 14.49%.

*Options data sourced from Schaeffer’s, 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.

Source: 14 Oversold Stocks With Bearish Options