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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 for stocks with bearish sentiment, with float shorts above 10%. We then screened for those that also appear undervalued relative to earnings growth, with PEG below 1.

Finally, we screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

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 companies have strong sales trends? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. ZAGG Inc. (NASDAQ:ZAGG): Designs, manufactures, and distributes protective coverings, audio accessories, and power solutions for consumer electronic and hand-held devices, under the invisibleSHIELD, ZAGGaudio, and ZAGGskins brand names, primarily in the United States and Europe. Market cap at $305.83M, most recent closing price at $10.11. Float short at 53.60%. Revenue grew by 105.63% during the most recent quarter ($55.48M vs. $26.98M y/y). Inventory grew by 21.09% during the same time period ($25.66M vs. $21.19M y/y). Inventory, as a percentage of current assets, decreased from 50.32% to 28.72% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Xinyuan Real Estate Co., Ltd. (NYSE:XIN): Engages in residential real estate development in China. Market cap at $195.45M, most recent closing price at $2.68. Float short at 52.34%. Revenue grew by 88.04% during the most recent quarter ($172.58M vs. $91.78M y/y). Inventory grew by 4.77% during the same time period ($711.95M vs. $679.56M y/y). Inventory, as a percentage of current assets, decreased from 60.81% to 53.25% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Diamond Foods, Inc. (NASDAQ:DMND): Engages in processing, marketing, and distributing snack products, as well as culinary, in-shell, and ingredient nuts. Market cap at $411.2M, most recent closing price at $18.64. Float short at 51.31%. Revenue grew by 31.79% during the most recent quarter ($232.77M vs. $176.62M y/y). Inventory grew by 1.51% during the same time period ($145.57M vs. $143.41M y/y). Inventory, as a percentage of current assets, decreased from 59.73% to 52.74% during the most recent quarter (comparing 3 months ending 2011-07-31 to 3 months ending 2010-07-31).

4. Cash America International, Inc. (NYSE:CSH): Provides specialty financial services to individuals primarily in the United States and Mexico. Market cap at $1.21B, most recent closing price at $41.07. Float short at 17.35%. Revenue grew by 25.39% during the most recent quarter ($457.49M vs. $364.86M y/y). Inventory grew by 18.46% during the same time period ($139.52M vs. $117.78M y/y). Inventory, as a percentage of current assets, decreased from 20.77% to 19.51% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

5. 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 $292.9M, most recent closing price at $18.86. Float short at 17.47%. Revenue grew by 19.68% during the most recent quarter ($88.92M vs. $74.3M y/y). Inventory grew by -3.28% during the same time period ($15.35M vs. $15.87M y/y). Inventory, as a percentage of current assets, decreased from 22.45% to 20.26% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

6. Stillwater Mining Co. (NYSE:SWC): Engages in the development, extraction, processing, refining, and marketing of palladium, platinum, and associated metals in south central Montana, the United States. Market cap at $1.07B, most recent closing price at $9.31. Float short at 11.18%. Revenue grew by 19.4% during the most recent quarter ($203.05M vs. $170.06M y/y). Inventory grew by -5.79% during the same time period ($133.36M vs. $141.55M y/y). Inventory, as a percentage of current assets, decreased from 35.09% to 32.22% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

7. Netgear Inc. (NASDAQ:NTGR): Designs, develops and markets networking products for home users and small businesses worldwide. Market cap at $1.18B, most recent closing price at $31.01. Float short at 11.03%. Revenue grew by 16.79% during the most recent quarter ($325.62M vs. $278.82M y/y). Inventory grew by -4.14% during the same time period ($134.31M vs. $140.11M y/y). Inventory, as a percentage of current assets, decreased from 21.13% to 16.68% during the most recent quarter (comparing 3 months ending 2012-04-01 to 3 months ending 2011-04-03).

8. 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 $950.83M, most recent closing price at $23.46. Float short at 36.13%. Revenue grew by 15.59% during the most recent quarter ($117.2M vs. $101.39M y/y). Inventory grew by -3.61% during the same time period ($98.23M vs. $101.91M y/y). Inventory, as a percentage of current assets, decreased from 64.63% to 62.56% during the most recent quarter (comparing 13 weeks ending 2012-04-28 to 13 weeks ending 2011-04-30).

9. BorgWarner Inc. (NYSE:BWA): Engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications worldwide. Market cap at $7.24B, most recent closing price at $63.17. Float short at 11.66%. Revenue grew by 10.52% during the most recent quarter ($1,912.5M vs. $1,730.4M y/y). Inventory grew by -2.02% during the same time period ($480.8M vs. $490.7M y/y). Inventory, as a percentage of current assets, decreased from 22.78% to 19.95% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

10. Sonic Automotive Inc. (NYSE:SAH): Operates as an automotive retailer in the United States. Market cap at $749.81M, most recent closing price at $14.11. Float short at 22.74%. Revenue grew by 9.32% during the most recent quarter ($1,987.84M vs. $1,818.3M y/y). Inventory grew by 5.89% during the same time period ($986.1M vs. $931.24M y/y). Inventory, as a percentage of current assets, decreased from 78.86% to 78.05% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 10 Highly Shorted, Undervalued Stocks With Strong Inventory Trends