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
2. Federated Investors
3. Legg Mason
5. XL Group
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.