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The put/call ratio is a helpful indicator for the sentiment surrounding a stock. When the ratio rises, it indicates that more options traders are now bearish on a stock, and vice versa.

We ran a screen among companies reporting Q2 earnings next week for those that are technically oversold (with RSI(14) below 40). We then screened this universe for stocks that have seen significant decreases in their put/call ratio (a bullish change) over the last 10 trading days.

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.



Do you think options traders are calling it right on these names? Use this list as a starting point for your own analysis.

List sorted by decrease in put/call ratio.

1. Pinnacle West Capital Corporation (NYSE:PNW): Electric Utilities Industry. Market cap of $4.71B. RSI(14) at 33.46. Earnings will be released on 08/02. Put/call ratio has decreased 90.32% over the last 10 trading days (from 0.62 to 0.06). The stock has gained 14.45% over the last year.

2. Leap Wireless International Inc. (LEAP): Wireless Communications Industry. Market cap of $1.10B. RSI(14) at 23.40. Earnings will be released on 08/03. Put/call ratio has decreased 55.83% over the last 10 trading days (from 1.20 to 0.53). The stock is a short squeeze candidate, with a short float at 11.12% (equivalent to 5.02 days of average volume). The stock has performed poorly over the last month, losing 15.46%.

3. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX): Healthcare Information Services Industry. Market cap of $3.37B. RSI(14) at 32.42. Earnings will be released on 08/02. Put/call ratio has decreased 53.33% over the last 10 trading days (from 1.65 to 0.77). The stock is currently stuck in a downtrend, trading 7.07% below its SMA20, 7.86% below its SMA50, and 10.38% below its SMA200. The stock has gained 7.07% over the last year.

4. DG FastChannel, Inc. (NASDAQ:DGIT):
Business Services Industry. Market cap of $783.10M. RSI(14) at 36.08. Earnings will be released on 08/03. Put/call ratio has decreased 52.94% over the last 10 trading days (from 0.34 to 0.16). Might be undervalued at current levels, with a PEG ratio at 0.87 and P/FCF ratio at 9.64. The stock is a short squeeze candidate, with a short float at 12.92% (equivalent to 10.31 days of average volume). It has been a rough couple of days for the stock, losing 5.83% over the last week.

5. Given Imaging Ltd. (GIVN): Medical Appliances and Equipment Industry. Market cap of $553.43M. RSI(14) at 31.15. Earnings will be released on 08/04. Put/call ratio has decreased 50.0% over the last 10 trading days (from 0.14 to 0.07). It has been a rough couple of days for the stock, losing 7.54% over the last week.

6. Henry Schein Inc. (NASDAQ:HSIC): Medical Equipment Wholesale Industry. Market cap of $6.23B. RSI(14) at 34.40. Earnings will be released on 08/02. Put/call ratio has decreased 45.63% over the last 10 trading days (from 1.03 to 0.56). It has been a rough couple of days for the stock, losing 6.82% over the last week.

7. WebMD Health Corp. (NASDAQ:WBMD): Healthcare Information Services Industry. Market cap of $2.10B. RSI(14) at 33.50. Earnings will be released on 08/02. Put/call ratio has decreased 44.68% over the last 10 trading days (from 0.47 to 0.26). The stock is currently stuck in a downtrend, trading 16.02% below its SMA20, 21.21% below its SMA50, and 29.93% below its SMA200. The stock has performed poorly over the last month, losing 23.74%.

8. Orbotech Ltd. (NASDAQ:ORBK): Diversified Electronics Industry. Market cap of $402.74M. RSI(14) at 27.41. Earnings will be released on 08/01. Put/call ratio has decreased 44.44% over the last 10 trading days (from 0.27 to 0.15). The stock is currently stuck in a downtrend, trading 8.69% below its SMA20, 10.32% below its SMA50, and 11.16% below its SMA200. The stock has gained 2.71% over the last year.

9. Kindred Healthcare Inc. (NYSE:KND): Medical Instruments and Supplies Industry. Market cap of $747.46M. RSI(14) at 34.81. Earnings will be released on 08/03. Put/call ratio has decreased 41.27% over the last 10 trading days (from 1.26 to 0.74). Might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 9.32. It has been a rough couple of days for the stock, losing 7.65% over the last week.

10. Consolidated Communications Holdings Inc. (NASDAQ:CNSL): Telecom Services Industry. Market cap of $545.21M. RSI(14) at 36.01. Earnings will be released on 08/04. Put/call ratio has decreased 40.20% over the last 10 trading days (from 1.02 to 0.61). The stock has gained 13.74% over the last year.

11. Cbeyond, Inc. (NASDAQ:CBEY): Diversified Communication Services Industry. Market cap of $372.54M. RSI(14) at 28.33. Earnings will be released on 08/01. Put/call ratio has decreased 38.36% over the last 10 trading days (from 0.73 to 0.45). The stock is a short squeeze candidate, with a short float at 7.59% (equivalent to 9.34 days of average volume). It has been a rough couple of days for the stock, losing 5.78% over the last week.

12. Select Medical Holdings Corporation (NYSE:SEM):
Hospitals Industry. Market cap of $1.24B. RSI(14) at 34.08. Earnings will be released on 08/04. Put/call ratio has decreased 34.78% over the last 10 trading days (from 0.69 to 0.45). It has been a rough couple of days for the stock, losing 5.07% over the last week.

13. Fifth Street Finance Corp. (NASDAQ:FSC):
Credit Services Industry. Market cap of $746.04M. RSI(14) at 32.99. Earnings will be released on 08/03. Put/call ratio has decreased 32.81% over the last 10 trading days (from 0.64 to 0.43). The stock is a short squeeze candidate, with a short float at 9.57% (equivalent to 6.07 days of average volume). The stock has gained 14.42% over the last year.

14. Mercury Computer Systems, Inc. (NASDAQ:MRCY): Computer Peripherals Industry. Market cap of $505.52M. RSI(14) at 33.56. Earnings will be released on 08/02. Put/call ratio has decreased 30.61% over the last 10 trading days (from 0.49 to 0.34). It has been a rough couple of days for the stock, losing 5.74% over the last week.

15. Auxilium Pharmaceuticals Inc. (NASDAQ:AUXL): Drug Related Products Industry. Market cap of $912.79M. RSI(14) at 34.38. Earnings will be released on 08/01. Put/call ratio has decreased 30.30% over the last 10 trading days (from 0.33 to 0.23). The stock is a short squeeze candidate, with a short float at 20.23% (equivalent to 14.6 days of average volume). It has been a rough couple of days for the stock, losing 5.22% over the last week.

*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: 15 Oversold Companies Reporting Earnings Next Week With Bullish Options Sentiment