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The following is a list of stocks that are oversold, according to the Relative Strength, or RSI(14), indicator. All of these stocks have conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity was founded in 2002 to develop risk management tools based on a statistical analysis of corporate integrity. The Accounting and Governance Risk (AGR) rating is a forensic measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices, according to Audit Integrity.

All the companies in this list have high AGR scores above 80, i.e. more conservative and transparent accounting practices than most other firms. In addition, all of these stocks have RSI(14) values below 40.

RSI(14) values sourced from Finviz, AGR scores sourced from Finviz. Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 AGR score.

1. Ruddick Corp. (RDK): Grocery Stores Industry. Market cap of $1.72B. According to Audit Integrity, the company has conservative accounting practices, with an AGR score of 97. RSI(14) at 36.47. Short float at 6.61%, which implies a short ratio of 12.04 days. The stock has gained 38.74% over the last year.

2. 99 Cents Only Stores (NDN): Discount, Variety Stores Industry. Market cap of $1.06B. According to Audit Integrity, the company has conservative accounting practices, with an AGR score of 93. RSI(14) at 38.67. Short float at 9.37%, which implies a short ratio of 5.64 days. The stock has gained 12.26% over the last year.

3. Warner Music Group Corp. (WMG): Entertainment Industry. Market cap of $815.04M. According to Audit Integrity, the company has conservative accounting practices, with an AGR score of 91. RSI(14) at 34.92. Short float at 4.2%, which implies a short ratio of 24.87 days. The stock has gained 3.95% over the last year.

4. Progressive Corp. (PGR): Property and Casualty Insurance Industry. Market cap of $12.71B. According to Audit Integrity, the company has conservative accounting practices, with an AGR score of 88. RSI(14) at 37.24. Short float at 2.13%, which implies a short ratio of 2.56 days. The stock has gained 8.99% over the last year.

5. American Eagle Outfitters, Inc. (AEO): Apparel Stores Industry. Market cap of $2.74B. According to Audit Integrity, the company has conservative accounting practices, with an AGR score of 87. RSI(14) at 38.02. Short float at 8.59%, which implies a short ratio of 2.6 days. The stock has lost -14.46% over the last year.

6. HSN, Inc. (HSNI): Catalog and Mail Order Houses Industry. Market cap of $1.65B. According to Audit Integrity, the company has average accounting and governance risk, with an AGR score of 85. RSI(14) at 38.12. Short float at 10.23%, which implies a short ratio of 7.73 days. The stock has gained 45.36% over the last year.

7. Virgin Media, Inc. (VMED): CATV Systems Industry. Market cap of $8.13B. According to Audit Integrity, the company has average accounting and governance risk, with an AGR score of 85. RSI(14) at 35.55. Short float at 8.53%, which implies a short ratio of 8.42 days. The stock has gained 45.78% over the last year.

8. Chico's FAS Inc. (CHS): Apparel Stores Industry. Market cap of $1.93B. According to Audit Integrity, the company has average accounting and governance risk, with an AGR score of 81. RSI(14) at 38.91. Short float at 5.35%, which implies a short ratio of 2.4 days. The stock has lost -21.15% over the last year.

Source: Eight Oversold Stocks With Conservative Accounting Practices