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The following is a list of oversold companies, as defined by the Relative Strength, or RSI(14), indicator. All of the stocks in this list have RSI(14) values below 40, which suggest oversold conditions.

In addition, all of these companies have solid financials, as defined by the quick ratio and interest coverage ratios. Near-term liquidity ratios suggest the companies might be able to ride out recent weakness, what do you think?

RSI(14) values sourced from Finviz, quick ratios and interest coverage ratios sourced from Reuters.

click for expanded image

The list has been sorted by the quick ratio.

1. Insituform Technologies Inc. (INSU): Heavy Construction Industry. Market cap of $855.39M. RSI(14) at 36.35. MRQ Quick Ratio at 2.26 vs. industry average at 0.41. TTM Interest Coverage at 7.56 vs. industry average at 0.15. Short float at 8.64%, which implies a short ratio of 13.3 days. The stock has lost -3.96% over the last year.

2. Halliburton Company (HAL): Oil & Gas Equipment & Services Industry. Market cap of $28.56B. RSI(14) at 41.85. MRQ Quick Ratio at 2.2 vs. industry average at 1.05. TTM Interest Coverage at 10.87 vs. industry average at 6.41. Short float at 2.27%, which implies a short ratio of 1.51 days. The stock has gained 8.69% over the last year.

3. The Children's Place Retail Stores, Inc. (PLCE): Apparel Stores Industry. Market cap of $1.2B. RSI(14) at 38.05. MRQ Quick Ratio at 1.99 vs. industry average at 1.39. TTM Interest Coverage at 11.73 vs. industry average at 11.14. Short float at 24.81%, which implies a short ratio of 6.19 days. The stock has gained 35.87% over the last year.

4. NRG Energy, Inc. (NRG): Electric Utilities Industry. Market cap of $5.04B. RSI(14) at 38.89. MRQ Quick Ratio at 1.65 vs. industry average at 0.45. Short float at 4.68%, which implies a short ratio of 4.52 days. The stock has lost -14.67% over the last year.

5. Leggett & Platt, Incorporated (LEG): Home Furnishings & Fixtures Industry. Market cap of $2.98B. RSI(14) at 34.17. MRQ Quick Ratio at 1.56 vs. industry average at 1.19. Short float at 5.02%, which implies a short ratio of 4.77 days. The stock has gained 10.96% over the last year.

6. Exelon Corp. (EXC): Diversified Utilities Industry. Market cap of $27.13B. RSI(14) at 38.13. MRQ Quick Ratio at 1.5 vs. industry average at 0.45. TTM Interest Coverage at 6.44. Short float at 3.23%, which implies a short ratio of 5.19 days. The stock has lost -7.3% over the last year.

7. ALLETE, Inc. (ALE): Diversified Utilities Industry. Market cap of $1.28B. RSI(14) at 34.03. MRQ Quick Ratio at 1.76 vs. industry average at 0.45. TTM Interest Coverage at 4.91. Short float at 3.85%, which implies a short ratio of 10.72 days. The stock has gained 13.55% over the last year.

8. Matthews International Corporation (MATW): Metal Fabrication Industry. Market cap of $970.83M. RSI(14) at 34.38. MRQ Quick Ratio at 1.47 vs. industry average at 1.14. TTM Interest Coverage at 8.35 vs. industry average at 0.7. Short float at 4.1%, which implies a short ratio of 14.24 days. The stock has lost -10.27% over the last year.

9. Bemis Company, Inc. (BMS): Packaging & Containers Industry. Market cap of $3.39B. RSI(14) at 33.73. MRQ Quick Ratio at 1.28 vs. industry average at 0.83. TTM Interest Coverage at 8.24 vs. industry average at 0.26. Short float at 4.2%, which implies a short ratio of 5.38 days. The stock has gained 21.99% over the last year.

10. Fresh Del Monte Produce Inc. (FDP): Farm Products Industry. Market cap of $1.31B. RSI(14) at 38.06. MRQ Quick Ratio at 1.09 vs. industry average at 0.68. TTM Interest Coverage at 11.0 vs. industry average at 0.05. Short float at 4.54%, which implies a short ratio of 7.8 days. The stock has lost -0.84% over the last year.

11. RadioShack Corp. (RSH): Electronics Stores Industry. Market cap of $2.27B. RSI(14) at 39.13. MRQ Quick Ratio at 1.19 vs. industry average at 0.55. TTM Interest Coverage at 8.92 vs. industry average at 0.63. Short float at 6.78%, which implies a short ratio of 2.6 days. The stock has gained 21.39% over the last year.

12. Dresser-Rand Group Inc. (DRC): Diversified Machinery Industry. Market cap of $2.83B. RSI(14) at 36.05. MRQ Quick Ratio at 1.16 vs. industry average at 1.07. TTM Interest Coverage at 12.52 vs. industry average at 7.24. Short float at 1.32%, which implies a short ratio of 1.44 days. The stock has gained 19.89% over the last year.

Disclosure: No positions

Source: 12 Oversold Companies With Solid Financials