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

In addition, all of these stocks have seen institutional selling over the last three months.

If you're a contrarian, this excessive pessimism might raise a flag. We're not going to into detailed analysis here, the goal is to give you a starting point for your own analysis.

We last wrote about this screen on November 8, 2010. On that day, the screen produced 13 companies (except for Cogent Inc. and Res-Care Inc., both companies have been acquired since then). Since then, 8 out of 13 companies mentioned in that article have outperformed the S&P 500 index (a success rate of 61.54%). The screen averaged a return of 6.54% vs. an index return of 3.94%. Click here to access a full breakdown of the screen's past performance.

Institutional data sourced from Reuters, RSI(14) and short float data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the change in institutional ownership.

1. AutoZone Inc. (AZO): Auto Parts Stores Industry. Market cap of $11.01B. RSI(14) at 34.54. Institutional investors currently own 47,752,347 shares vs. 49,576,547 shares held three months ago (-3.68% change). Short float at 5.41%, which implies a short ratio of 4.77 days. The stock has gained 61.77% over the last year.

2. Homex Development Corp. (HXM): Property Management Industry. Market cap of $1.83B. RSI(14) at 34.27. Institutional investors currently own 21,887,052 shares vs. 22,292,174 shares held three months ago (-1.82% change). Short float at 7.07%, which implies a short ratio of 13.01 days. The stock has lost -5.77% over the last year.

3. Con-way Inc. (CNW): Trucking Industry. Market cap of $1.86B. RSI(14) at 37.85. Institutional investors currently own 52,203,323 shares vs. 53,073,522 shares held three months ago (-1.64% change). Short float at 6.69%, which implies a short ratio of 5.42 days. The stock has gained 4.84% over the last year.

4. Acuity Brands, Inc. (AYI): Diversified Electronics Industry. Market cap of $2.36B. RSI(14) at 38.18. Institutional investors currently own 41,885,710 shares vs. 42,541,578 shares held three months ago (-1.54% change). Short float at 10.01%, which implies a short ratio of 10.72 days. The stock has gained 46.14% over the last year.

5. LAN Airlines S.A. (LFL): Regional Airlines Industry. Market cap of $9.86B. RSI(14) at 34.1. Institutional investors currently own 23,198,743 shares vs. 23,464,443 shares held three months ago (-1.13% change). Short float at 35.53%, which implies a short ratio of 20.18 days. The stock has gained 73.88% over the last year.

6. Bancolombia S.A. (CIB): Foreign Regional Banks Industry. Market cap of $11.37B. RSI(14) at 33.47. Institutional investors currently own 34,346,001 shares vs. 34,699,089 shares held three months ago (-1.02% change). Short float at 1.08%, which implies a short ratio of 3.75 days. The stock has gained 29.77% over the last year.

Source: Contrarian Ideas: 6 Oversold Stocks Being Dumped by Smart Money