24 Oversold Stocks Undervalued to Free Cash Flow and Earnings Growth

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There are several ways to check whether a stock is oversold – you can look at technical indicators such as RSI, and you can also compare price multiples to see if the price appears too low.

Here we report 24 stocks that are technically oversold, with RSI(14) below 40. These stocks are also undervalued relative to free cash flow and earnings growth, with P/FCF under 10 and PEG under 1.

Do you think these stocks are positioned to move higher? Use this list as a starting-off point for your own analysis.

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3. Visualize market cap changes for the top stocks mentioned

List sorted by market cap.

1. Hewlett-Packard Company (HPQ): Diversified Computer Systems Industry. Market cap of $79.09B. RSI(14) at 33.19. PEG at 0.99, P/FCF at 9.5. The stock is currently stuck in a downtrend, trading 5.34% below its SMA20, 8.42% below its SMA50, and 12.4% below its SMA200. The stock has performed poorly over the last month, losing 10.94%.

2. Ford Motor Co. (F): Auto Manufacturers - Major Industry. Market cap of $55.30B. RSI(14) at 36.66. PEG at 0.94, P/FCF at 7.54. The stock has gained 21.43% over the last year.

3. American International Group, Inc. (AIG): Property & Casualty Insurance Industry. Market cap of $51.66B. RSI(14) at 32.12. PEG at 0.29, P/FCF at 5.71. The stock is currently stuck in a downtrend, trading 5.09% below its SMA20, 11.92% below its SMA50, and 20.18% below its SMA200. It's been a rough couple of days for the stock, losing 6.78% over the last week.



4. AFLAC Inc. (AFL): Accident & Health Insurance Industry. Market cap of $23.19B. RSI(14) at 27.95. PEG at 0.9, P/FCF at 3.16. The stock is currently stuck in a downtrend, trading 9.28% below its SMA20, 9.16% below its SMA50, and 10.38% below its SMA200. The stock has gained 10.64% over the last year.

5. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $22.84B. RSI(14) at 31.87. PEG at 0.67, P/FCF at 9.46. The stock has performed poorly over the last month, losing 21.59%.

6. Micron Technology Inc. (MU): Semiconductor- Memory Chips Industry. Market cap of $9.80B. RSI(14) at 38.64. PEG at 0.57, P/FCF at 5.28. The stock has performed poorly over the last month, losing 17.03%.

7. Textron Inc. (TXT): Conglomerates Industry. Market cap of $6.15B. RSI(14) at 27.76. PEG at 0.95, P/FCF at 7.75. This is a risky stock that is significantly more volatile than the overall market (beta = 2.75). The stock is a short squeeze candidate, with a short float at 8.4% (equivalent to 5.9 days of average volume). It's been a rough couple of days for the stock, losing 5.04% over the last week.

8. Computer Sciences Corporation (CSC): Information Technology Services Industry. Market cap of $5.95B. RSI(14) at 28.08. PEG at 0.78, P/FCF at 5.84. The stock is currently stuck in a downtrend, trading 11.37% below its SMA20, 16.53% below its SMA50, and 16.42% below its SMA200. It's been a rough couple of days for the stock, losing 13.48% over the last week.

9. Lam Research Corporation (LRCX): Semiconductor Equipment & Materials Industry. Market cap of $5.70B. RSI(14) at 35.21. PEG at 0.78, P/FCF at 7.66. The stock has gained 20.62% over the last year.

10. Smithfield Foods Inc. (SFD): Meat Products Industry. Market cap of $3.41B. RSI(14) at 35.42. PEG at 0.91, P/FCF at 9.8. The stock has performed poorly over the last month, losing 13.88%.

11. Community Health Systems, Inc. (CYH): Hospitals Industry. Market cap of $2.72B. RSI(14) at 37.75. PEG at 0.73, P/FCF at 7.12. The stock has lost 28.38% over the last year.

12. Vishay Intertechnology Inc. (VSH): Semiconductor - Broad Line Industry. Market cap of $2.60B. RSI(14) at 38.76. PEG at 0.62, P/FCF at 6.06. This is a risky stock that is significantly more volatile than the overall market (beta = 2.18). Short float at 8.81% (equivalent to 5.12 days of average volume), indicating the stock is a short squeeze candidate. After a solid performance over the last year, VSH has pulled back during recent sessions. The stock is 5.85% below its SMA20 and 8.87% below its SMA50, but remains 10.86% above its SMA200. The stock has performed poorly over the last month, losing 17.32%.

13. Lender Processing Services, Inc. (LPS): Business Services Industry. Market cap of $2.25B. RSI(14) at 32.74. PEG at 0.91, P/FCF at 7.19. The stock is currently stuck in a downtrend, trading 6.82% below its SMA20, 12.36% below its SMA50, and 14.48% below its SMA200. It's been a rough couple of days for the stock, losing 7.12% over the last week.

14. Janus Capital Group, Inc. (JNS): Asset Management Industry. Market cap of $1.91B. RSI(14) at 31.09. PEG at 0.93, P/FCF at 7.57. This is a risky stock that is significantly more volatile than the overall market (beta = 2.68). The stock is a short squeeze candidate, with a short float at 9.04% (equivalent to 5.17 days of average volume). The stock is currently stuck in a downtrend, trading 6.63% below its SMA20, 12.42% below its SMA50, and 12.29% below its SMA200. The stock has performed poorly over the last month, losing 16.75%.

15. Endurance Specialty Holdings Ltd. (ENH): Property & Casualty Insurance Industry. Market cap of $1.61B. RSI(14) at 26.78. PEG at 0.62, P/FCF at 4.82. Short float at 9.21% (equivalent to 8.41 days of average volume), indicating the stock is a short squeeze candidate. The stock has performed poorly over the last month, losing 10.2%.

16. MKS Instruments Inc. (MKSI): Diversified Machinery Industry. Market cap of $1.35B. RSI(14) at 35.12. PEG at 0.47, P/FCF at 8.92. The stock has performed poorly over the last month, losing 10.28%.

17. Collective Brands, Inc. (PSS): Apparel Stores Industry. Market cap of $940.02M. RSI(14) at 24.19. PEG at 0.74, P/FCF at 5.41. The stock is a short squeeze candidate, with a short float at 14.02% (equivalent to 6.95 days of average volume). The stock is currently stuck in a downtrend, trading 17.61% below its SMA20, 23.57% below its SMA50, and 16.6% below its SMA200. It's been a rough couple of days for the stock, losing 20.18% over the last week.

18. Amedisys Inc. (AMED): Home Health Care Industry. Market cap of $914.16M. RSI(14) at 38.89. PEG at 0.73, P/FCF at 7.8. The stock is a short squeeze candidate, with a short float at 22.08% (equivalent to 18.02 days of average volume). It's been a rough couple of days for the stock, losing 6.73% over the last week.

19. Gentiva Health Services Inc. (GTIV): Home Health Care Industry. Market cap of $745.23M. RSI(14) at 38.94. PEG at 0.8, P/FCF at 6.58. The stock is a short squeeze candidate, with a short float at 5.06% (equivalent to 8.8 days of average volume). The stock has performed poorly over the last month, losing 13.61%.

20. ReneSola Ltd. (SOL): Semiconductor - Integrated Circuits Industry. Market cap of $612.29M. RSI(14) at 35.14. PEG at 0.23, P/FCF at 2.31. This is a risky stock that is significantly more volatile than the overall market (beta = 2.94). The stock is currently stuck in a downtrend, trading 8.77% below its SMA20, 17.38% below its SMA50, and 26.71% below its SMA200. It's been a rough couple of days for the stock, losing 6.5% over the last week.

21. NewStar Financial, Inc. (NEWS): Credit Services Industry. Market cap of $459.23M. RSI(14) at 34.99. PEG at 0.89, P/FCF at 9.52. This is a risky stock that is significantly more volatile than the overall market (beta = 2.42). The stock has performed poorly over the last month, losing 24.12%.

22. Himax Technologies, Inc. (HIMX): Semiconductor - Specialized Industry. Market cap of $384.87M. RSI(14) at 36.38. PEG at 0.75, P/FCF at 8.96. The stock is currently stuck in a downtrend, trading 7.39% below its SMA20, 9.54% below its SMA50, and 10.38% below its SMA200. The stock has performed poorly over the last month, losing 11.89%.

23. Great Lakes Dredge & Dock Corporation (GLDD): Heavy Construction Industry. Market cap of $358.74M. RSI(14) at 27.38. PEG at 0.4, P/FCF at 6.6. The stock is a short squeeze candidate, with a short float at 5.36% (equivalent to 6.73 days of average volume). The stock is currently stuck in a downtrend, trading 6.17% below its SMA20, 12.85% below its SMA50, and 10.95% below its SMA200. The stock has performed poorly over the last month, losing 15.16%.

24. The Dolan Company (DM): Publishing - Periodicals Industry. Market cap of $309.17M. RSI(14) at 32.35. PEG at 0.78, P/FCF at 7.48. The stock is currently stuck in a downtrend, trading 7.17% below its SMA20, 11.89% below its SMA50, and 15.25% below its SMA200. The stock has performed poorly over the last month, losing 13.73%.

Data sourced from Finviz on May 27th.



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


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