9 Oversold Stocks With Bullish Trends From Hedge Funds And Short Sellers

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 |  Includes: ARX, CEVA, CMLS, CNS, GDOT, HMIN, LDK, PWER, RE, TZOO
by: Kapitall

Do you like to follow the technical trading patterns of stocks? For ideas on how to start your search, we ran a screen.

We began by screening for technically oversold stocks, with RSI(14) below 40. We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the current quarter.

Finally, we screened for those with bullish trends in shares shorted, with significant decreases in shares shorted month-over-month.

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 these stocks will outperform like the smart money expects? Use this list as a starting point for your own analysis.

1. Aeroflex Holding Corp. (NYSE:ARX): Designs, engineers, manufactures, and sells microelectronics, and test solution and measurement equipment in the United States, Europe, the Middle East, Asia, and Australia. RSI(14) at 39.34. Net institutional purchases in the current quarter at 1.2M shares, which represents about 6.07% of the company's float of 19.76M shares. Shares shorted have decreased from 2.22M to 1.37M over the last month, a decrease which represents about 4.3% of the company's float of 19.76M shares.

2. CEVA Inc. (NASDAQ:CEVA): Engages in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. RSI(14) at 37.38. Net institutional purchases in the current quarter at 1.4M shares, which represents about 6.05% of the company's float of 23.14M shares. Shares shorted have decreased from 3.79M to 3.54M over the last month, a decrease which represents about 1.08% of the company's float of 23.14M shares.

3. Cumulus Media Inc. (NASDAQ:CMLS): Engages in the acquisition, operation, and development of commercial radio stations in the United States. RSI(14) at 37.79. Net institutional purchases in the current quarter at 10.5M shares, which represents about 21.98% of the company's float of 47.78M shares. Shares shorted have decreased from 9.78M to 7.51M over the last month, a decrease which represents about 4.75% of the company's float of 47.78M shares.

4. Cohen & Steers Inc. (NYSE:CNS): Provides investment management services to individual and institutional investors through a range of investment vehicles. RSI(14) at 39.23. Net institutional purchases in the current quarter at 2.0M shares, which represents about 11.64% of the company's float of 17.18M shares. Shares shorted have decreased from 3.76M to 3.11M over the last month, a decrease which represents about 3.78% of the company's float of 17.18M shares.

5. Green Dot Corporation (NYSE:GDOT): RSI(14) at 36.15. Net institutional purchases in the current quarter at 7.2M shares, which represents about 42.25% of the company's float of 17.04M shares. Shares shorted have decreased from 4.06M to 3.65M over the last month, a decrease which represents about 2.41% of the company's float of 17.04M shares.

6. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Develops, leases, operates, franchises, and manages a chain of economy hotels in the People's Republic of China. RSI(14) at 35.38. Net institutional purchases in the current quarter at 3.7M shares, which represents about 15.3% of the company's float of 24.19M shares. Shares shorted have decreased from 5.84M to 5.13M over the last month, a decrease which represents about 2.94% of the company's float of 24.19M shares.

7. LDK Solar Co., Ltd. (NYSE:LDK): Engages in the design, development, manufacture, and marketing of photovoltaic products; and development of power plant projects. RSI(14) at 33.75. Net institutional purchases in the current quarter at 2.5M shares, which represents about 3.97% of the company's float of 63.05M shares. Shares shorted have decreased from 23.43M to 20.90M over the last month, a decrease which represents about 4.01% of the company's float of 63.05M shares.

8. Power-One Inc. (NASDAQ:PWER): Designs, manufactures, and markets power conversion and power management solutions for the renewable energy, communications infrastructure, and other technology markets. RSI(14) at 36.79. Net institutional purchases in the current quarter at 16.9M shares, which represents about 17.11% of the company's float of 98.80M shares. Shares shorted have decreased from 9.32M to 7.90M over the last month, a decrease which represents about 1.44% of the company's float of 98.80M shares.

9. Travelzoo Inc. (NASDAQ:TZOO): Publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe. RSI(14) at 36.68. Net institutional purchases in the current quarter at 829.2K shares, which represents about 16.45% of the company's float of 5.04M shares. Shares shorted have decreased from 4.18M to 3.78M over the last month, a decrease which represents about 7.94% of the company's float of 5.04M shares.

*Short data sourced from Yahoo! Finance, institutional data sourced from Fidelity, 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.