8 Highly Shorted Stocks Undervalued By EPS Trends

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 |  Includes: CJES, MNK, PSS, RRD, SAH, SODA, TWI, TZOO
by: Kapitall

Do you consider yourself a value investor? Do you like to look for potentially undervalued stocks? If so, here's a list you might be interested in.

We ran a screen on highly shorted stocks, with float shorts above 20%, for those that appear undervalued based on EPS trends.

Assuming that P/E is equal to a constant k, increases in EPS should be matched by proportionate increases in price. When they don't match up, a mispricing may have occurred. That is, these stocks have been seeing strong increases in analyst estimated EPS than increases in price over the last 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.

Do you think these stocks may soon see a short squeeze? Use this list as a starting point for your own analysis.

1. C&J Energy Services, Inc. Commo (NYSE:CJES): Provides specialty equipment services for oil and natural gas exploration and production companies in the Texas, Louisiana, and Oklahoma regions of the United States. Float short at 74.54%. The EPS estimate for the company's current year increased from 4.19 to 4.32 over the last 30 days, an increase of 3.1%. This increase came during a time when the stock price changed by 0.26% (from 19.13 to 19.18 over the last 30 days).

2. Collective Brands, Inc. (NYSE:PSS): Engages in the wholesale and retail of footwear and related accessories worldwide. Float short at 22.56%. The EPS estimate for the company's current year increased from 0.9 to 1.03 over the last 30 days, an increase of 14.44%. This increase came during a time when the stock price changed by -0.98% (from 18.38 to 18.2 over the last 30 days).

3. Questcor Pharmaceuticals, Inc. (QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Float short at 20.90%. The EPS estimate for the company's current year increased from 1.97 to 2.21 over the last 30 days, an increase of 12.18%. This increase came during a time when the stock price changed by -0.71% (from 36.6 to 36.34 over the last 30 days).

4. R.R. Donnelley & Sons Company (NASDAQ:RRD): Provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. Float short at 31.26%. The EPS estimate for the company's current year increased from 1.74 to 1.82 over the last 30 days, an increase of 4.6%. This increase came during a time when the stock price changed by 2.42% (from 12.79 to 13.1 over the last 30 days).

5. Sonic Automotive Inc. (NYSE:SAH): Operates as an automotive retailer in the United States. Float short at 23.96%. The EPS estimate for the company's current year increased from 1.56 to 1.64 over the last 30 days, an increase of 5.13%. This increase came during a time when the stock price changed by 3.64% (from 17.59 to 18.23 over the last 30 days).

6. SodaStream International Ltd. (NASDAQ:SODA): Engages in the development, manufacture, and marketing of home beverage carbonation systems and related products. Float short at 54.34%. The EPS estimate for the company's current year increased from 1.48 to 1.73 over the last 30 days, an increase of 16.89%. This increase came during a time when the stock price changed by -9.09% (from 41.24 to 37.49 over the last 30 days).

7. Titan International Inc. (NYSE:TWI): Manufactures wheels, tires, and assemblies for off-highway vehicles used in the agricultural, earthmoving/construction, and consumer markets in the United States. Float short at 24.92%. The EPS estimate for the company's current year increased from 2.28 to 2.32 over the last 30 days, an increase of 1.75%. This increase came during a time when the stock price changed by -1.2% (from 25.01 to 24.71 over the last 30 days).

8. Travelzoo Inc. (NASDAQ:TZOO): Publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe. Float short at 73.95%. The EPS estimate for the company's current year increased from 1.54 to 1.55 over the last 30 days, an increase of 0.65%. This increase came during a time when the stock price changed by -6.19% (from 25.7 to 24.11 over the last 30 days).

*EPS data sourced from Yahoo! Finance, 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.