Do you consider yourself a contrarian? If you like to go against the crowd or second-guess market rallies, your answer might be yes.

With a contrarian perspective, we ran a screen on the small-cap sector for names that may be underestimated. We began by screening for small-caps, with market caps between $300m and $2b, for those that are being highly shorted, with float shorts above 15%.

We then screened these names for those that appear undervalued relative to the Graham Number, a measure of a stock's maximum fair value created by the "godfather of value investing" Benjamin Graham.

It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

*Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.*

Do you think these stocks offer contrarian opportunities for a turnaround? Use this list as a starting point for your own analysis.

List sorted by potential upside implied by Graham Number.

** 1. hhgregg, Inc. (HGG):** Operates as a specialty retailer of consumer electronics, home appliances, and related services. Market cap at $395.86M. Price at $10.93. Float short at 33.26%. Diluted TTM earnings per share at 1.08, and a MRQ book value per share value at 8.49, implies a Graham Number fair value = sqrt(22.5*1.08*8.49) = $14.36. Based on the stock's price at $10.50, this implies a potential upside of 36.79% from current levels.

** 2. Veeco Instruments Inc. (VECO):** Designs, manufactures, and markets equipment to make high brightness light emitting diodes, solar panels, hard-disk drives, and other devices. Market cap at $1.07B. Price at $28.68. Float short at 23.87%. Diluted TTM earnings per share at 3.11, and a MRQ book value per share value at 19.62, implies a Graham Number fair value = sqrt(22.5*3.11*19.62) = $37.05. Based on the stock's price at $28.30, this implies a potential upside of 30.93% from current levels.

** 3. Brown Shoe Co. Inc. (BWS):** Operates as a footwear retailer and wholesaler primarily in the in the United States, Canada, China, and Guam. Market cap at $380.42M. Price at $9.29. Float short at 18.23%. Diluted TTM earnings per share at 0.56, and a MRQ book value per share value at 9.83, implies a Graham Number fair value = sqrt(22.5*0.56*9.83) = $11.13. Based on the stock's price at $8.61, this implies a potential upside of 29.26% from current levels.

** 4. Corinthian Colleges Inc. (COCO):** Operates as a post-secondary career education company in the United States and Canada. Market cap at $309.00M. Price at $3.72. Float short at 19.77%. Diluted TTM earnings per share at 0.15, and a MRQ book value per share value at 6.64, implies a Graham Number fair value = sqrt(22.5*0.15*6.64) = $4.73. Based on the stock's price at $3.71, this implies a potential upside of 27.6% from current levels.

** 5. AmTrust Financial Services, Inc. (AFSI):** Operates as a multinational specialty property and casualty insurance company in the United States and internationally. Market cap at $1.58B. Price at $26.53. Float short at 20.37%. Diluted TTM earnings per share at 2.77, and a MRQ book value per share value at 14.82, implies a Graham Number fair value = sqrt(22.5*2.77*14.82) = $30.39. Based on the stock's price at $26.32, this implies a potential upside of 15.47% from current levels.

*BVPS and 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.