10 Undervalued Stocks With Bearish Options Sentiment

By
A A A
Share |

Compiled Luis Gonzalez: The following is a list of undervalued stocks, with Price to Earnings Growth (PEG) ratios below 1. All of the stocks mentioned below have a large number of open put option positions relative to call option positions, i.e. a high Put/Call ratio.

Some technical traders view the Put/Call ratio as a contrary indicator when it reaches extreme highs or lows. In other words, because the stocks mentioned below have a high number of open put option positions, contrarians would think most of the stocks mentioned below are set for gains. Do you agree?

This list might offer an interesting starting point to a value-oriented investor.

PEG ratios sourced from Finviz, options data sourced from Schaeffer's.

Analyze These Ideas (Tools Will Open In A New Window)

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

 

 

The list has been sorted by the Put/Call ratio.

1. Cadence Design Systems Inc. (CDNS): Technical & System Software Industry. Market cap of $2.27B. PEG at 0.68. Call open interest at 2,874 contracts vs. put open interest at 31,476 contracts (Put/Call ratio at 10.95). Short float at 7.25%, which implies a short ratio of 6.83 days. The stock has gained 42.55% over the last year.

2. Lincoln Educational Services Corporation (LINC): Education & Training Services Industry. Market cap of $326.05M. PEG at 0.41. Call open interest at 880 contracts vs. put open interest at 8,644 contracts (Put/Call ratio at 9.82). Short float at 5.81%, which implies a short ratio of 3.59 days. The stock has lost -28.99% over the last year.

3. Lender Processing Services, Inc. (LPS): Business Services Industry. Market cap of $2.95B. PEG at 0.94. Call open interest at 2,310 contracts vs. put open interest at 15,040 contracts (Put/Call ratio at 6.51). Short float at 6.26%, which implies a short ratio of 4.85 days. The stock has lost -22.31% over the last year.

4. HealthSpring Inc. (HS): Health Care Plans Industry. Market cap of $1.67B. PEG at 0.65. Call open interest at 854 contracts vs. put open interest at 3,089 contracts (Put/Call ratio at 3.62). Short float at 4.97%, which implies a short ratio of 4.89 days. The stock has gained 54.13% over the last year.

5. Aixtron AG (AIXG): Diversified Machinery Industry. Market cap of $4.09B. PEG at 0.29. Call open interest at 5,438 contracts vs. put open interest at 17,687 contracts (Put/Call ratio at 3.25). Short float at 4.65%, which implies a short ratio of 12 days. The stock has gained 36.64% over the last year.

6. Tenneco Inc. (TEN): Auto Parts Industry. Market cap of $2.5B. PEG at 0.57. Call open interest at 1,768 contracts vs. put open interest at 5,286 contracts (Put/Call ratio at 2.99). Short float at 8.71%, which implies a short ratio of 5.66 days. The stock has gained 132.4% over the last year.

7. Career Education Corp. (CECO): Education & Training Services Industry. Market cap of $1.78B. PEG at 0.86. Call open interest at 6,012 contracts vs. put open interest at 16,892 contracts (Put/Call ratio at 2.81). Short float at 8.87%, which implies a short ratio of 6.82 days. The stock has lost -6.45% over the last year.

8. China-Biotics, Inc. (CHBT): Drug Manufacturers Industry. Market cap of $313.64M. PEG at 0.34. Call open interest at 8,951 contracts vs. put open interest at 23,285 contracts (Put/Call ratio at 2.6). Short float at 30.54%, which implies a short ratio of 8.39 days. The stock has gained 1.43% over the last year.

9. Bridgepoint Education, Inc. (BPI): Education & Training Services Industry. Market cap of $899.75M. PEG at 0.33. Call open interest at 2,918 contracts vs. put open interest at 7,455 contracts (Put/Call ratio at 2.55). Short float at 18.25%, which implies a short ratio of 24.13 days. The stock has gained 17.21% over the last year.

10. Cninsure Inc. (CISG): Insurance Brokers Industry. Market cap of $831.65M. PEG at 0.54. Call open interest at 3,952 contracts vs. put open interest at 9,783 contracts (Put/Call ratio at 2.48). Short float at 13.26%, which implies a short ratio of 5.19 days. The stock has lost -0.92% over the last year.



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


Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

100%
100%
100%
100%
100%

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM