7 Oversold, Highly Efficient Companies

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Includes: DF, HIMX, HSY, LNCE, PAA, T, VG
by: Kapitall

The following is a list of oversold stocks, as defined by the Relative Strength, or RSI(14), indicator. All of the stocks mentioned below have RSI(14) levels below 40, which usually signals oversold conditions.

In addition, all of these companies are highly efficient, based on trailing twelve month (TTM) receivables and asset turnover ratios.

What do you think? Is the market underestimating the efficiency of these companies? Full analysis below.

Efficiency data sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to see how analyst ratings have changed for all the stocks mentioned below. (Analyst ratings sourced from Zacks Investment Research.)

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1. Plains All American Pipeline LP (NYSE:PAA): Oil & Gas Pipelines Industry. Market cap of $8.34B. RSI(14) at 36.21. TTM Receivables Turnover at 12.94 vs. industry average of 1.39. TTM Asset Turnover at 2.04 vs. industry average of 0.21. Short float at 0.34%, which implies a short ratio of 1.36 days. The stock has gained 27.76% over the last year.

2. Vonage Holdings Corporation (NYSE:VG): Diversified Communication Services Industry. Market cap of $484.91M. RSI(14) at 36.7. TTM Receivables Turnover at 49.63 vs. industry average of 5.55. TTM Asset Turnover at 2.62 vs. industry average of 0.51. Short float at 2.95%, which implies a short ratio of 2.22 days. The stock has gained 76.74% over the last year.

3. DIRECTV (DTV): CATV Systems Industry. Market cap of $34.26B. RSI(14) at 34.59. TTM Receivables Turnover at 14.45 vs. industry average of 4.86. TTM Asset Turnover at 1.29 vs. industry average of 0.39. Short float at 2.97%, which implies a short ratio of 3.22 days. The stock has gained 22.18% over the last year.

4. Himax Technologies, Inc. (NASDAQ:HIMX): Semiconductor Industry. Market cap of $367.99M. RSI(14) at 33.19. TTM Receivables Turnover at 3.34 vs. industry average of 1.48. TTM Asset Turnover at 1.14 vs. industry average of 0.17. Short float at 0.3%, which implies a short ratio of 2.12 days. The stock has lost -20.91% over the last year.

5. Dean Foods Co. (NYSE:DF): Dairy Products Industry. Market cap of $1.36B. RSI(14) at 32.09. TTM Receivables Turnover at 14.19 vs. industry average of 5.47. TTM Asset Turnover at 1.54 vs. industry average of 0.7. Short float at 4.85%, which implies a short ratio of 1.61 days. The stock has lost -55.89% over the last year.

6. Lance, Inc. (NASDAQ:LNCE): Processed & Packaged Goods Industry. Market cap of $698.75M. RSI(14) at 35.96. TTM Receivables Turnover at 10.41 vs. industry average of 5.47. TTM Asset Turnover at 1.79 vs. industry average of 0.7. Short float at 4.33%, which implies a short ratio of 8.84 days. The stock has lost -9.35% over the last year.

7. Hershey Co. (NYSE:HSY): Confectioners Industry. Market cap of $10.44B. RSI(14) at 35.37. TTM Receivables Turnover at 9.54 vs. industry average of 5.47. TTM Asset Turnover at 1.46 vs. industry average of 0.7. Short float at 3.74%, which implies a short ratio of 4.59 days. The stock has gained 32.71% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.