Jun
5
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 financial 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.
Tool provided by Kapitall.
Do you think the market has excessive bearishness on these names? Use this list as a starting point for your own analysis.
List sorted by increase in EPS estimate over the last month.
1. PHH Corporation (PHH): Provides mortgage and fleet management outsourcing services in the United States and Canada. Market cap at $905.83M, most recent closing price at $15.99. Float short at 20.62%. The EPS estimate for the company’s current year increased from 1.85 to 2.28 over the last 30 days, an increase of 23.24%. This increase came during a time when the stock price changed by -4.71% (from 16.78 to 15.99 over the last 30 days).
2. Southside Bancshares Inc. (SBSI): Operates as the holding company for Southside Bank that provides financial products and services to individuals, businesses, municipal entities, and non-profit organizations. Market cap at $351.83M, most recent closing price at $20.29. Float short at 10.27%. The EPS estimate for the company’s current year increased from 1.91 to 2.07 over the last 30 days, an increase of 8.38%. This increase came during a time when the stock price changed by 1.81% (from 19.93 to 20.29 over the last 30 days).
3. Getty Realty Corp. (GTY): Operates as a real estate investment trust in the United States. Market cap at $517.21M, most recent closing price at $15.49. Float short at 14.10%. The EPS estimate for the company’s current year increased from 1.15 to 1.23 over the last 30 days, an increase of 6.96%. This increase came during a time when the stock price changed by -1.27% (from 15.69 to 15.49 over the last 30 days).
4. GrupoFinanciero Galicia S.A. (GGAL): Operates as the holding company for Banco de Galicia y Buenos Aires S. Market cap at $558.63M, most recent closing price at $4.50. Float short at 10.13%. The EPS estimate for the company’s current year increased from 1.93 to 2.05 over the last 30 days, an increase of 6.22%. This increase came during a time when the stock price changed by -14.45% (from 5.26 to 4.5 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.
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