10 High Growth Stocks With Increasing Put/Call Ratio

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The following is a list of high growth stocks, as defined by past sales growth and projected EPS growth. Additionally, all of these stocks have seen a recent increase in the Put/Call ratio, which is based on open interest of option contracts.

To create the list we started with a universe of over 100 stocks with the following characteristics:

  • Sales growth over last 5 years > 10%
  • EPS growth over last 5 years > 15%
  • Projected EPS growth over next five years > 20%

We then looked at the options markets and ranked these stocks according to the highest percentage increase in the Put/Call Ratio from March 1 to March 14.

For contrarians, this excessive pessimism might raise a flag and may imply that these stocks are set for a rally. What do you think? Full details below.

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1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by percentage change in Put/Call ratio.

1. Pegasystems Inc. (PEGA): Business Software & Services Industry. Market cap of $1.33B. Sales grew by 20.65% over the last 5 years, while EPS grew by 30.95%. Moving forward, EPS are expected to grow by 24.0% over the next five years. Current Put/Call ratio at 1.24 vs. a previous ratio of 0.35 (254.29% change). The stock is a short squeeze candidate, with a short float at 14.07% (equivalent to 14.74 days of average volume). After a solid performance over the last year, PEGA has pulled back during recent sessions. The stock is -8.24% below its SMA20 and -4.31% below its SMA50, but remains 13.24% above its SMA200. The stock has lost 2.34% over the last year. 

2. Peabody Energy Corp. (BTU): Industrial Metals & Minerals Industry. Market cap of $17.08B. Sales grew by 13.35% over the last 5 years, while EPS grew by 22.42%. Moving forward, EPS are expected to grow by 22.53% over the next five years. Current Put/Call ratio at 2.3 vs. a previous ratio of 1.25 (84.0% change). It's been a rough couple of days for the stock, losing 8.95% over the last week. 

3. Green Mountain Coffee Roasters Inc. (GMCR): Processed & Packaged Goods Industry. Market cap of $8.33B. Sales grew by 53.06% over the last 5 years, while EPS grew by 46.14%. Moving forward, EPS are expected to grow by 33.48% over the next five years. Current Put/Call ratio at 1.4 vs. a previous ratio of 0.98 (42.86% change). The stock is a short squeeze candidate, with a short float at 23.92% (equivalent to 6.05 days of average volume). Exhibiting strong upside momentum--currently trading 34.36% above its SMA20, 51.47% above its SMA50, and 79.27% above its SMA200. The stock has had a couple of great days, gaining 40.98% over the last week. 

4. Catalyst Health Solutions, Inc. (CHSI): Insurance Brokers Industry. Market cap of $2.47B. Sales grew by 40.22% over the last 5 years, while EPS grew by 26.75%. Moving forward, EPS are expected to grow by 20.33% over the next five years. Current Put/Call ratio at 1.53 vs. a previous ratio of 1.21 (26.45% change). Relatively low correlation to the market (beta = 0.6), which may be appealing to risk averse investors. Exhibiting strong upside momentum--currently trading 16.98% above its SMA20, 19.68% above its SMA50, and 32.36% above its SMA200. The stock has had a couple of great days, gaining 19.61% over the last week. 

5. DIRECTV (DTV): CATV Systems Industry. Market cap of $36.28B. Sales grew by 12.86% over the last 5 years, while EPS grew by 62.58%. Moving forward, EPS are expected to grow by 22.21% over the next five years. Current Put/Call ratio at 1.37 vs. a previous ratio of 1.19 (15.13% change). Might be undervalued at current levels, with a PEG ratio at 0.83, and P/FCF ratio at 13.. The stock has gained 31.57% over the last year. 

6. Sourcefire, Inc. (FIRE): Security Software & Services Industry. Market cap of $730.78M. Sales grew by 31.76% over the last 5 years, while EPS grew by 132.68%. Moving forward, EPS are expected to grow by 27.0% over the next five years. Current Put/Call ratio at 1.4 vs. a previous ratio of 1.23 (13.82% change). The stock is a short squeeze candidate, with a short float at 9.88% (equivalent to 5.92 days of average volume). The stock has gained 2.56% over the last year. 

7. NuVasive, Inc. (NUVA): Medical Instruments & Supplies Industry. Market cap of $1.04B. Sales grew by 50.18% over the last 5 years, while EPS grew by 289.87%. Moving forward, EPS are expected to grow by 21.67% over the next five years. Current Put/Call ratio at 1.18 vs. a previous ratio of 1.05 (12.38% change). The stock is a short squeeze candidate, with a short float at 18.67% (equivalent to 9.76 days of average volume). The stock is currently stuck in a downtrend, trading -8.62% below its SMA20, -8.13% below its SMA50, and -16.39% below its SMA200. The stock has lost 40.39% over the last year. 

8. Aixtron AG (AIXG): Diversified Machinery Industry. Market cap of $4.14B. Sales grew by 41.25% over the last 5 years, while EPS grew by 93.04%. Moving forward, EPS are expected to grow by 67.5% over the next five years. Current Put/Call ratio at 3.46 vs. a previous ratio of 3.12 (10.9% change). This is a risky stock that is significantly more volatile than the overall market (beta = 2.72). The stock has gained 17.85% over the last year. 

9. Cyberonics Inc. (CYBX): Medical Appliances & Equipment Industry. Market cap of $914.0M. Sales grew by 10.16% over the last 5 years, while EPS grew by 96.41%. Moving forward, EPS are expected to grow by 26.58% over the next five years. Current Put/Call ratio at 1.75 vs. a previous ratio of 1.62 (8.02% change). Relatively low correlation to the market (beta = 0.79), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 5.7% (equivalent to 7.21 days of average volume). After a solid performance over the last year, CYBX has pulled back during recent sessions. The stock is -3.3% below its SMA20 and -4.37% below its SMA50, but remains 16.24% above its SMA200. The stock has gained 70.49% over the last year. 

10. priceline.com Incorporated (PCLN): General Entertainment Industry. Market cap of $22.77B. Sales grew by 26.23% over the last 5 years, while EPS grew by 19.67%. Moving forward, EPS are expected to grow by 21.47% over the next five years. Current Put/Call ratio at 1.19 vs. a previous ratio of 1.12 (6.25% change). The stock has gained 93.88% over the last year. 

Short float, past sales data and EPS growth projections sourced from Finviz. Options data sourced from Schaeffer's. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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