Quantitative analyst Chris Prybal of Schaeffer’s Investment Research eyes four stocks with contrarian potential.
Here's an updated list of equities that notched an all-time high Monday against a sturdy backdrop of skepticism. Based on sentiment backdrops, the environment is ripe for continued upside in AutoNation, Inc. (AN), Colgate-Palmolive Company (CL), Wal-Mart Stores, Inc. (WMT), and Williams-Sonoma, Inc. (WSM).
For starters, lofty levels of short interest on outperforming stocks allow the possibility for a short-covering rally. Meanwhile, such high levels of pessimism from the brokerage bunch leaves the door wide open for a round of upgrades and/or price-target hikes. Additionally, heavy accumulations of near-term put open interest could give these equities a lift, as the bearish bets unwind.
Auto retailer AutoNation, Inc. (NYSE:AN)
Consumer products maker Colgate-Palmolive Company (NYSE:CL)
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