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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.

In addition, all of these stocks are undervalued, when comparing the current price to the average analyst target price (used as a proxy for fair value).

Yes, there are many limitations to this approach of finding undervalued companies. But the goal here is to give you a starting point for your own analysis. Full details below.

RSI(14) and target price data sourced from Finviz.

Interactive Chart: Press Play to compare changes in market cap for the top six names mentioned below. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the discount to average analyst target price.

1. Iridium Communications Inc. (IRDM): Communication Equipment Industry. Market cap of $576.75M. Current price at $8.21 vs. average analyst target price at $14.00 (implies a discount of -41.36%). RSI(14) at 33.12. Short float at 14.2%, which implies a short ratio of 18.63 days. The stock has gained 4.45% over the last year.

2. Fushi Copperweld, Inc. (FSIN): Industrial Electrical Equipment Industry. Market cap of $335.29M. Current price at $8.87 vs. average analyst target price at $14.30 (implies a discount of -37.97%). RSI(14) at 34.66. Short float at 12.68%, which implies a short ratio of 8.21 days. The stock has lost -16.71% over the last year.

3. Ener1, Inc. (HEV): Industrial Electrical Equipment Industry. Market cap of $616.52M. Current price at $3.79 vs. average analyst target price at $6 (implies a discount of -36.83%). RSI(14) at 35.93. Short float at 5.12%, which implies a short ratio of 12.88 days. The stock has lost -43.52% over the last year.

4. Portugal Telecom SGPS SA (PT): Wireless Communications Industry. Market cap of $9.84B. Current price at $11.23 vs. average analyst target price at $16.41 (implies a discount of -31.57%). RSI(14) at 22.07. Short float at 0.09%, which implies a short ratio of 3.07 days. The stock has lost -1.14% over the last year.

5. Clearwire Corporation (CLWR): Wireless Communications Industry. Market cap of $5.22B. Current price at $5.29 vs. average analyst target price at $7.65 (implies a discount of -30.85%). RSI(14) at 38.87. Short float at 18.33%, which implies a short ratio of 8.87 days. The stock has lost -28.03% over the last year.

6. China Digital TV Holding Co., Ltd. (STV): Application Software Industry. Market cap of $415.83M. Current price at $7.14 vs. average analyst target price at $10.1 (implies a discount of -29.31%). RSI(14) at 39.98. Short float at 0.24%, which implies a short ratio of 0.28 days. The stock has gained 14.79% over the last year.

7. Nektar Therapeutics (NKTR): Biotechnology Industry. Market cap of $1.18B. Current price at $12.53 vs. average analyst target price at $17.67 (implies a discount of -29.09%). RSI(14) at 39.55. Short float at 9.92%, which implies a short ratio of 14.26 days. The stock has gained 34.44% over the last year.

8. PAETEC Holding Corp. (PAET): Diversified Communication Services Industry. Market cap of $546.89M. Current price at $3.78 vs. average analyst target price at $5.31 (implies a discount of -28.81%). RSI(14) at 38.4. Short float at 2.6%, which implies a short ratio of 9.01 days. The stock has lost -13.5% over the last year.

9. The Talbots Inc. (TLB): Apparel Stores Industry. Market cap of $599.7M. Current price at $8.51 vs. average analyst target price at $11.92 (implies a discount of -28.61%). RSI(14) at 37.66. Short float at 23.16%, which implies a short ratio of 4.4 days. The stock has lost -6.38% over the last year.

10. EarthLink Inc. (ELNK): Internet Service Providers Industry. Market cap of $935.8M. Current price at $8.64 vs. average analyst target price at $12.05 (implies a discount of -28.3%). RSI(14) at 39.75. Short float at 9.03%, which implies a short ratio of 7.53 days. The stock has gained 8.68% over the last year.

11. Regal Entertainment Group (RGC): Movie Production Industry. Market cap of $1.86B. Current price at $12.05 vs. average analyst target price at $16.77 (implies a discount of -28.15%). RSI(14) at 35.58. Short float at 7.48%, which implies a short ratio of 5.83 days. The stock has lost -12.93% over the last year.

12. Diana Shipping Inc. (DSX): Shipping Industry. Market cap of $993.23M. Current price at $12.12 vs. average analyst target price at $16.62 (implies a discount of -27.08%). RSI(14) at 36.8. Short float at 1.48%, which implies a short ratio of 1.09 days. The stock has lost -16.3% over the last year.

13. Randgold Resources Ltd. (GOLD): Gold Industry. Market cap of $7.42B. Current price at $81.6 vs. average analyst target price at $111.11 (implies a discount of -26.56%). RSI(14) at 30.46. Short float at 0.77%, which implies a short ratio of 0.87 days. The stock has gained 3.36% over the last year.

14. Home Inns & Hotels Management Inc. (HMIN): Lodging Industry. Market cap of $1.62B. Current price at $39.7 vs. average analyst target price at $53.26 (implies a discount of -25.46%). RSI(14) at 31.14. Short float at 4.24%, which implies a short ratio of 2.9 days. The stock has gained 1.98% over the last year.

15. DuPont Fabros Technology, Inc. (DFT): Property Management Industry. Market cap of $1.26B. Current price at $21.1 vs. average analyst target price at $28.14 (implies a discount of -25.02%). RSI(14) at 39.35. Short float at 22.53%, which implies a short ratio of 13.51 days. The stock has gained 19.89% over the last year.

16. Given Imaging Ltd. (GIVN): Medical Appliances & Equipment Industry. Market cap of $413.74M. Current price at $14.75 vs. average analyst target price at $19.67 (implies a discount of -25.01%). RSI(14) at 37.23. Short float at 1.8%, which implies a short ratio of 4.47 days. The stock has lost -15.52% over the last year.

17. Helix Energy Solutions Group, Inc. (HLX): Oil & Gas Equipment & Services Industry. Market cap of $1.27B. Current price at $12.01 vs. average analyst target price at $16 (implies a discount of -24.94%). RSI(14) at 35.53. Short float at 6.53%, which implies a short ratio of 4.3 days. The stock has gained 2.21% over the last year.

18. Expedia Inc. (EXPE): Lodging Industry. Market cap of $7.05B. Current price at $24.79 vs. average analyst target price at $32.97 (implies a discount of -24.81%). RSI(14) at 33.11. Short float at 6.61%, which implies a short ratio of 3.06 days. The stock has lost -3.39% over the last year.

19. hhgregg, Inc. (HGG): Electronics Stores Industry. Market cap of $840.17M. Current price at $21.27 vs. average analyst target price at $27.64 (implies a discount of -23.05%). RSI(14) at 38.41. Short float at 34.09%, which implies a short ratio of 18.2 days. The stock has lost -3.01% over the last year.

20. Mastercard Incorporated (MA): Business Services Industry. Market cap of $28.9B. Current price at $220.85 vs. average analyst target price at $284.37 (implies a discount of -22.34%). RSI(14) at 36. Short float at 1.72%, which implies a short ratio of 1.44 days. The stock has lost -14.01% over the last year.

21. Photronics Inc. (PLAB): Semiconductor Industry. Market cap of $320.56M. Current price at $5.97 vs. average analyst target price at $7.63 (implies a discount of -21.76%). RSI(14) at 37.82. Short float at 8.86%, which implies a short ratio of 8.35 days. The stock has gained 34.04% over the last year.

22. Orbitz Worldwide, Inc. (OWW): General Entertainment Industry. Market cap of $553.5M. Current price at $5.41 vs. average analyst target price at $6.88 (implies a discount of -21.37%). RSI(14) at 38.09. Short float at 1.46%, which implies a short ratio of 5.21 days. The stock has lost -30.37% over the last year.

23. Canadian Solar Inc. (CSIQ): Semiconductor Industry. Market cap of $533.95M. Current price at $12.49 vs. average analyst target price at $15.88 (implies a discount of -21.35%). RSI(14) at 39.84. Short float at 12.89%, which implies a short ratio of 2.74 days. The stock has lost -59.7% over the last year.

Source: 23 Oversold Stocks That Are Undervalued Relative to Target Price