Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



5 S&P 500 Financial Stocks With Strong Short Covering

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Interested in big-name financial industry stocks with signs of pricing in an upside? For ideas, investors often turn to the sentiment of "smart" investors like hedge funds or short-sellers.

Here we screened for those with bullish trends in shares shorted month over month (i.e., short covering), with significant decreases in shares shorted, indicating these investors are becoming less bearish on these stocks.

Due to the borrowing inherent in short-selling, short-sellers undergo background checks and other requirements to qualify, which makes them generally considered to be "smart money" investors. That is, the market closely follows their trades. 

Business section: Investing ideas
Below is the final list of stocks from this screen. Short-sellers are becoming less bearish on these names.

Do you think they're on the cusp of a comeback? (Click here to access free, interactive tools to analyze these ideas.)

1. CBRE Group (NYSE: CBG  ) : Operates as a commercial real estate services company worldwide. Shares shorted have decreased from 8.84 million to 5.59 million over the last month, a decrease which represents about 1.2% of the company's float of 270.21 million shares

2. Federated Investors (NYSE: FII  ) : Provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Shares shorted have decreased from 17.13 million to 15.42 million over the last month, a decrease which represents about 1.84% of the company's float of 92.7 million shares.

3. Legg Mason (NYSE: LM  ) : Operates as an asset management company worldwide. Shares shorted have decreased from 8.5 million to 7.35 million over the last month, a decrease which represents about 1.02% of the company's float of 112.88 million shares.

4. Travelers (NYSE: TRV  ) : Provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Shares shorted have decreased from 9.71 million to 4.75 million over the last month, a decrease which represents about 1.27% of the company's float of 391.73 million shares.

5. XL Group (NYSE: XL  ) : Provides insurance and reinsurance coverages to industrial, commercial, and professional firms, insurance companies, and other enterprises worldwide. Shares shorted have decreased from 8.0 million to 3.47 million over the last month, a decrease which represents about 1.52% of the company's float of 297.59 million shares.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.


Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Short data sourced from Yahoo! Finance. Motley Fool newsletter services have recommended buying shares of Federated Investors. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1863971, ~/Articles/ArticleHandler.aspx, 10/25/2016 6:46:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 4:04 PM
CBG $28.30 Up +0.47 +1.69%
CBRE Group CAPS Rating: ****
FII $27.56 Up +0.12 +0.44%
Federated Investor… CAPS Rating: *****
LM $31.99 Up +0.13 +0.41%
Legg Mason CAPS Rating: *****
TRV $109.07 Up +0.72 +0.66%
The Travelers Comp… CAPS Rating: *****
XL $33.71 Up +0.21 +0.63%
XL Capital CAPS Rating: ***