Do you like to search for potentially undervalued stocks? For ideas on how to start your own value search, we ran a screen.
We began by screening the retail sector for stocks that appear undervalued relative to earnings growth, with PEG below 1.
We then screened for those with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month representing at least 2% of share float. This indicates that short sellers are more bullish on these names than they were a month ago.
Tool provided by Kapitall.
Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.
List sorted by decrease in shares shorted month-over-month as a percent of share float.
1. hhgregg, Inc. (NYSE:HGG): Operates as a specialty retailer of consumer electronics, home appliances, and related services. Market cap at $390.87M, most recent closing price at $10.56. PEG at 0.63. Shares shorted have decreased from 9.38M to 9.14M over the last month, a decrease which represents about 1.64% of the company's float of 14.66M shares. Days to cover ratio at 33.95 days.
2. Medifast Inc. (NYSE:MED): Engages in the production, distribution, and sale of weight management and disease management products, and other consumable health and diet products in the United States. Market cap at $280.47M, most recent closing price at $17.67. PEG at 0.9. Shares shorted have decreased from 3.06M to 2.68M over the last month, a decrease which represents about 3.07% of the company's float of 12.38M shares. Days to cover ratio at 9.71 days.
3. Vera Bradley, Inc. (NASDAQ:VRA): Engages in the design, production, marketing, and retail of functional accessories for women under the Vera Bradley brand. Market cap at $886.39M, most recent closing price at $21.25. PEG at 0.74. Shares shorted have decreased from 10.38M to 9.86M over the last month, a decrease which represents about 3.59% of the company's float of 14.48M shares. Days to cover ratio at 9.46 days.
*Short 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.