10 Oversold Stocks With Improving Inventory Turnover

By
A A A

Compiled by Luis Gonzalez: The following is a list of oversold stocks, as determined by the Relative Strength, or RSI(14), indicator. All of the stocks in this list have RSI(14) values below 40, which usually signal oversold conditions.

And to provide more light on these oversold stocks, we also collected data on inventory turnover. All of the companies mentioned below have seen revenues rise faster than inventory, implying an improvement in inventory turnover ratios.

Given the improvement in inventory efficiency, some might say these stocks are set for more gains--what do you think? Details below.


Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by difference in revenue growth rate and inventory growth rate.

1. Quantum Fuel Systems Technologies Worldwide Inc. (QTWW): Auto Parts Industry. Market cap of $821.39M. RSI(14) 30.17. MRQ revenue growth at 46.24% vs. MRQ inventory growth at -32.72%. Inventory, as a percentage of current assets, changed from 12.9% to 12.9%. The stock is a short squeeze candidate, with a short float at 9.91% (equivalent to 7.73 days of average volume). The stock is currently stuck in a downtrend, trading -5.43% below its SMA20, -35.43% below its SMA50, and -53.57% below its SMA200. The stock has performed poorly over the last month, losing 13.98%.

2. Ener1, Inc. (HEV): Industrial Electrical Equipment Industry. Market cap of $494.61M. RSI(14) 34.79. MRQ revenue growth at 202.47% vs. MRQ inventory growth at 126.8%. Inventory, as a percentage of current assets, changed from 28.31% to 16.01%. The stock is currently stuck in a downtrend, trading -10.88% below its SMA20, -18.94% below its SMA50, and -19.38% below its SMA200. The stock has performed poorly over the last month, losing 20.21%.

3. GSI Group Inc. (GSIG): Scientific & Technical Instruments Industry. Market cap of $356.40M. RSI(14) 32.53. MRQ revenue growth at 66.24% vs. MRQ inventory growth at -6.4%. Inventory, as a percentage of current assets, changed from 29.11% to 30.71%. After a solid performance over the last year, GSIG has pulled back during recent sessions. The stock is -11.36% below its SMA20 and -11.49% below its SMA50, but remains 19.03% above its SMA200. The stock has performed poorly over the last month, losing 20.22%.

4. MedcoHealth Solutions Inc. (MHS): Drugs Wholesale Industry. Market cap of $21.59B. RSI(14) 25.33. MRQ revenue growth at 11.05% vs. MRQ inventory growth at -21.17%. Inventory, as a percentage of current assets, changed from 15.75% to 15.15%. Relatively low correlation to the market (beta = 0.56), which may be appealing to risk averse investors. The stock is currently stuck in a downtrend, trading -12.32% below its SMA20, -15.04% below its SMA50, and -6.82% below its SMA200. It's been a rough couple of days for the stock, losing 9.72% over the last week.

5. American Superconductor Corporation (AMSC): Diversified Electronics Industry. Market cap of $1.18B. RSI(14) 35.86. MRQ revenue growth at 41.57% vs. MRQ inventory growth at 13.13%. Inventory, as a percentage of current assets, changed from 15.98% to 9.07%. The stock is a short squeeze candidate, with a short float at 24.24% (equivalent to 12.44 days of average volume). The stock is currently stuck in a downtrend, trading -6.38% below its SMA20, -12.66% below its SMA50, and -21.4% below its SMA200. The stock has performed poorly over the last month, losing 14.72%.

6. NutriSystem Inc. (NTRI): Consumer Services Industry. Market cap of $368.63M. RSI(14) 36. MRQ revenue growth at -16.68% vs. MRQ inventory growth at -44.72%. Inventory, as a percentage of current assets, changed from 36.21% to 25.29%. Relatively low correlation to the market (beta = 0.79), which may be appealing to risk averse investors. Might be undervalued at current levels, with a PEG ratio at 0.77, and P/FCF ratio at 13.98. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 5.09%, current ratio at 2.87, and quick ratio at 2.14. The stock is a short squeeze candidate, with a short float at 31.06% (equivalent to 12.96 days of average volume). The stock has performed poorly over the last month, losing 36.33%.

7. SanDisk Corp. (SNDK): Semiconductor- Memory Chips Industry. Market cap of $10.29B. RSI(14) 36.86. MRQ revenue growth at 6.91% vs. MRQ inventory growth at -14.57%. Inventory, as a percentage of current assets, changed from 20.46% to 12.64%. Might be undervalued at current levels, with a PEG ratio at 0.64, and P/FCF ratio at 7.66. The stock has performed poorly over the last month, losing 15.36%.

8. Rural/Metro Corp. (RURL): Consumer Services Industry. Market cap of $314.20M. RSI(14) 27.96. MRQ revenue growth at 6.04% vs. MRQ inventory growth at -13.02%. Inventory, as a percentage of current assets, changed from 6.81% to 5.1%. After a solid performance over the last year, RURL has pulled back during recent sessions. The stock is -12.89% below its SMA20 and -13.83% below its SMA50, but remains 14.25% above its SMA200. The stock has performed poorly over the last month, losing 13.55%.

9. Life Technologies Corporation (LIFE): Biotechnology Industry. Market cap of $9.01B. RSI(14) 35.64. MRQ revenue growth at 7.03% vs. MRQ inventory growth at -8.46%. Inventory, as a percentage of current assets, changed from 19.67% to 15.8%. Relatively low correlation to the market (beta = 0.78), which may be appealing to risk averse investors. The stock has lost 5.76% over the last year.

10. Finisar Corp. (FNSR): Networking & Communication Devices Industry. Market cap of $1.93B. RSI(14) 28.46. MRQ revenue growth at 57.55% vs. MRQ inventory growth at 44.12%. Inventory, as a percentage of current assets, changed from 36.78% to 25.63%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.99). The stock has performed poorly over the last month, losing 48.84%.

Moving average data sourced from Finviz, financials sourced from Google Finance. Data sourced on Wednesday, March 23rd.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


Kapitall

Kapitall

More from Kapitall:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com