How to find severely undervalued stocks that are heavily shorted by screening the fundamental metrics

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6/6/2025 00:54am

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To find severely undervalued stocks that are heavily shorted, you should focus on stocks with a Price-to-Book (P/B) Ratio below 1 and a significant Short Interest Ratio or Short Interest Percentage. Here are the steps to screen for such stocks:

P/B Ratio Below 1
- This indicates that the stock is trading below its book value, suggesting it may be undervalued.
High Short Interest Ratio or Percentage
- A high Short Interest Ratio or Percentage suggests that the stock is heavily shorted by investors, which could be a sign of potential market skepticism or a bearish outlook.

However, no results were found with a Short Interest Ratio greater than 20%¹. This could be because such ratios often indicate that a stock is heavily shorted, which might not be desirable for investment. Therefore, it's better to use the Short Interest Percentage for a more flexible approach.

p/b ratio < 1; short interest percentage > 20%(6)

Last Price($)	Last Change%	Price to Book Ratio2025.06.05	Trading Date2025.03.31	Interest Expenses on Short-term Debt($)2025.03.31	EBIT($)2025.03.31	Interest Expenses on Short-term Debt/ EBIT
31.56	0.64%	0.95	20250605	33.36M	76.50M	0.44
39.63	0.30%	0.92	20250605	336.00M	1.54B	0.22
4.95	1.66%	0.84	20250605	225.00K	124.00K	1.81
18.14	0.17%	0.83	20250605	1.76M	4.88M	0.36
13.65	0	0.67	20250605	119.00K	13.00K	9.15
16.80	-2.04%	0.47	20250605	8.73M	2.45M	3.57

Ticker
MBINMerchants
TFCTruist Financial
GLBZGlen Burnie Bancorp
ESSAESSA Bancorp
CFSBCFSB Bancorp
EGBNEagle Bancorp

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Upon adjusting to Short Interest Percentage, I found 6 stocks that meet the criteria². You can explore these further for potential investment opportunities.

Source:

1. P/B Ratio < 1; Short Interest Ratio > 20%

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