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Looking for outperforming stocks? Be cautious with these names because short sellers are signaling their winning streaks may soon be over.

To create the list below we started with a universe of stocks with market caps above $300 million. Then, to find names showing upside momentum, we screened for stocks on "winning streaks."

For our purposes, a winning streak is measured by a persistence of days in which the stock outperformed the S&P 500 and little persistence of days in underperforming the index. We measured this by the ratio of the longest winning streak (in days) divided by the longest losing streak over the last month.

Next, we looked for signs that their streak could be over, or at the very least have peaked. For this we turned to short seller trends and identified stocks that have increased short positions month-over-month.

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

(click to enlarge)

Tool provided by Kapitall (www.kapitall.com).

Perhaps short sellers are wrong to be pessimistic, but the sentiment is worth consideration. Use this list as a starting-off point for your own analysis.

1. magicJack VocalTec Ltd. (NASDAQ:CALL): Market cap at $512.49M, most recent closing price at $26.39. Shares shorted have increased from 4.41M to 4.73M over the last month, an increase which represents about 3.78% of the company's float of 8.46M shares. Days to cover ratio at 12 days. The stock's average daily alpha vs. the S&P500 index stands at 0.81% (measured close to close, over the last month). During this period, the longest winning streak lasted 11 days (i.e. the stock's daily returns outperformed the S&P 500 for 11 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 5.5).

2. EZchip Semiconductor Ltd. (NASDAQ:EZCH): Engages in the development and marketing of Ethernet network processors for networking equipment. Market cap at $951.78M, most recent closing price at $33.98. Shares shorted have increased from 3.03M to 3.80M over the last month, an increase which represents about 2.82% of the company's float of 27.30M shares. Days to cover ratio at 8.21 days. The stock's average daily alpha vs. the S&P500 index stands at 0.81% (measured close to close, over the last month). During this period, the longest winning streak lasted 8 days (i.e. the stock's daily returns outperformed the S&P 500 for 8 consecutive days). The longest losing streak lasted 3 days (i.e. a win streak / losing streak ratio of 2.67).

3. GenCorp Inc. (NYSE:GY): Engages in the manufacture and sale of aerospace and defense products and systems in the United States. Market cap at $590.56M, most recent closing price at $9.81. Shares shorted have increased from 6.28M to 6.77M over the last month, an increase which represents about 1.08% of the company's float of 45.36M shares. Days to cover ratio at 12.94 days. The stock's average daily alpha vs. the S&P500 index stands at 0.84% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

4. Hovnanian Enterprises Inc. (NYSE:HOV): Engages in homebuilding and financial services businesses in the United States. Market cap at $403.6M, most recent closing price at $3.60. Shares shorted have increased from 26.37M to 28.22M over the last month, an increase which represents about 1.75% of the company's float of 105.51M shares. Days to cover ratio at 6.21 days. The stock's average daily alpha vs. the S&P500 index stands at 0.93% (measured close to close, over the last month). During this period, the longest winning streak lasted 6 days (i.e. the stock's daily returns outperformed the S&P 500 for 6 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 3.).

5. Scientific Games Corporation (NASDAQ:SGMS): Provides gaming solutions to lottery and gaming organizations worldwide. Market cap at $733.83M, most recent closing price at $8.02. Shares shorted have increased from 1.82M to 2.35M over the last month, an increase which represents about 1.13% of the company's float of 46.88M shares. Days to cover ratio at 3.46 days. The stock's average daily alpha vs. the S&P500 index stands at 0.83% (measured close to close, over the last month). During this period, the longest winning streak lasted 5 days (i.e. the stock's daily returns outperformed the S&P 500 for 5 consecutive days). The longest losing streak lasted 2 days (i.e. a win streak / losing streak ratio of 2.5).

Price and short data sourced from Yahoo! Finance, price data sourced from Finviz.

Source: These Stocks Are On Winning Streaks, But Short Sellers Aren't Optimistic