Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Do you consider yourself a contrarian investor, always looking for opportunities against market trends? For ideas on how to start your own contrarian search, we ran a screen.

We began by screening the tech sector for stocks with bearish sentiment, with float shorts above 10%.

Then we screened for those stocks that may also be undervalued, by comparing price trends to changes in EPS estimates over the last month.

Based on the assumption that P/E is equal to a constant k, increases in EPS should be matched by increases in price. When they don't match up, a mispricing may have occurred.

We screened for stocks with faster growth in EPS estimates than price over the last month, which may indicate that these names are being undervalued.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

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 increase in EPS estimate.

1. 8x8 Inc. (NASDAQ:EGHT): Develops and markets telecommunications services for Internet protocol, telephony, and video applications, as well as provides Web-based conferencing and unified communications services. Market cap at $283.55M, most recent closing price at $4.01. Float short at 10.13%. The EPS estimate for the company's current year increased from 0.17 to 0.18 over the last 30 days, an increase of 5.88%. This increase came during a time when the stock price changed by -2.42% (from 4.13 to 4.03 over the last 30 days).

2. Stratasys Inc. (NASDAQ:SSYS): Engages in the development, manufacture, and marketing of three dimensional printing, rapid prototyping, and direct digital manufacturing systems primarily in North America, Europe, and the Asia Pacific. Market cap at $985.3M, most recent closing price at $46.28. Float short at 12.36%. The EPS estimate for the company's current year increased from 1.24 to 1.31 over the last 30 days, an increase of 5.65%. This increase came during a time when the stock price changed by -5.2% (from 49.46 to 46.89 over the last 30 days).

3. Photronics Inc. (NASDAQ:PLAB): Engages in the manufacture and sale of photomasks primarily in the United States, Europe, and Asia. Market cap at $342.41M, most recent closing price at $5.67. Float short at 12.77%. The EPS estimate for the company's current year increased from 0.54 to 0.57 over the last 30 days, an increase of 5.56%. This increase came during a time when the stock price changed by 3.15% (from 5.72 to 5.9 over the last 30 days).

4. Guidance Software, Inc. (NASDAQ:GUID): Provides software and hardware solutions for digital investigations primarily in the United States, Europe, the Middle East, Africa, and Asia/the Pacific Rim. Market cap at $200.87M, most recent closing price at $8.08. Float short at 10.10%. The EPS estimate for the company's current year increased from 0.37 to 0.39 over the last 30 days, an increase of 5.41%. This increase came during a time when the stock price changed by -6.3% (from 8.73 to 8.18 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.

Source: 4 Highly Shorted Tech Stocks Undervalued By EPS Trends