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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 mentioned below have RSI(14) values below 40, which usually signals oversold conditions.

In addition, all of the names mentioned below have excellent growth prospects, with higher projected EPS growth rates than their industry competitors. All of the companies mentioned below also have the following characteristics:

  • EPS and revenue grew faster than their industry competitors over the last five years
  • Capital spending accelerated at a faster rate than their competitors over the last five years (theoretically, this makes them more competitive over the coming years)
  • Cashflow growth has accelerated faster than their industry competitors over the last five years

We're not going to go into detailed analysis for each company. The goal here is to give growth-oriented investors a starting point for their own analysis.

All growth stats sourced from Fidelity, short float and performance 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 RSI(14) indicator.

1. Home Inns & Hotels Management Inc. (HMIN): Lodging Industry. Market cap of $1.52B. RSI(14) at 25.89. EPS have grown by 76.75% over the last five years vs. industry average at 2.26%. EPS projected to grow by 24.53% over the next five years vs. industry average at 20.09%. Revenue has grown by 100.71% over the last five years vs. industry average at 32.99%. Capital spending has grown by 55.43% over the last five years vs. industry average at 6.7%. The company's cash flow has grown by 123.69% over the last five years vs. industry average at 6.25%. Short float at 6.51%, which implies a short ratio of 4 days. The stock has gained 6.38% over the last year.

2. hhgregg, Inc. (HGG): Electronics Stores Industry. Market cap of $761.56M. RSI(14) at 33.48. EPS have grown by 8.34% over the last five years vs. industry average at 3.52%. EPS projected to grow by 18.93% over the next five years vs. industry average at 14.74%. Revenue has grown by 11.25% over the last five years vs. industry average at 5.54%. Capital spending has grown by 26.69% over the last five years vs. industry average at -7.95%. The company's cash flow has grown by 11.52% over the last five years vs. industry average at 3.97%. Short float at 33.03%, which implies a short ratio of 15.34 days. The stock has lost -5.77% over the last year.

3. The GEO Group, Inc. (GEO): Security & Protection Services Industry. Market cap of $1.51B. RSI(14) at 34.62. EPS have grown by 16.49% over the last five years vs. industry average at 5.08%. EPS projected to grow by 15.% over the next five years vs. industry average at 12.6%. Revenue has grown by 13.18% over the last five years vs. industry average at 9.1%. Capital spending has grown by 71.03% over the last five years vs. industry average at 5.95%. The company's cash flow has grown by 26.82% over the last five years vs. industry average at 9.27%. Short float at 2.75%, which implies a short ratio of 4.5 days. The stock has gained 11.32% over the last year.

4. HDFC Bank Ltd. (HDB): Foreign Regional Banks Industry. Market cap of $22.99B. RSI(14) at 35.68. EPS have grown by 25.18% over the last five years vs. industry average at -2.54%. EPS projected to grow by 30.% over the next five years vs. industry average at 22.76%. Revenue has grown by 39.34% over the last five years vs. industry average at 13.63%. Capital spending has grown by 17.86% over the last five years vs. industry average at 6.81%. The company's cash flow has grown by 32.5% over the last five years vs. industry average at 7.32%. Short float at 0.69%, which implies a short ratio of 2.83 days. The stock has gained 17.31% over the last year.

5. Salix Pharmaceuticals Ltd. (SLXP): Drugs Industry. Market cap of $2.47B. RSI(14) at 35.77. EPS have grown by 37.35% over the last five years vs. industry average at 9.12%. EPS projected to grow by 42.5% over the next five years vs. industry average at 5.73%. Revenue has grown by 17.16% over the last five years vs. industry average at 8.35%. Capital spending has grown by 49.81% over the last five years vs. industry average at 2.51%. The company's cash flow has grown by 28.47% over the last five years vs. industry average at 12.14%. Short float at 12.04%, which implies a short ratio of 8.24 days. The stock has gained 58.13% over the last year.

6. Companhia de Bebidas Das Americas (ABV): Brewers Industry. Market cap of $87.13B. RSI(14) at 38. EPS have grown by 47.42% over the last five years vs. industry average at 10.19%. EPS projected to grow by 12.5% over the next five years vs. industry average at 10.85%. Revenue has grown by 24.1% over the last five years vs. industry average at 9.23%. Capital spending has grown by 9.34% over the last five years vs. industry average at 8.48%. The company's cash flow has grown by 34.58% over the last five years vs. industry average at 9.14%. Short float at 0.94%, which implies a short ratio of 2.86 days. The stock has gained 40.12% over the last year.

7. National CineMedia, Inc. (NCMI): Marketing Services Industry. Market cap of $1.B. RSI(14) at 39.01. EPS have grown by 28.06% over the last five years vs. industry average at 7.59%. EPS projected to grow by 14.7% over the next five years vs. industry average at 13.62%. Revenue has grown by 30.97% over the last five years vs. industry average at 7.%. Capital spending has grown by 7.32% over the last five years vs. industry average at 3.9%. The company's cash flow has grown by 60.47% over the last five years vs. industry average at 9.57%. Short float at 1.79%, which implies a short ratio of 4.86 days. The stock has gained 17.03% over the last year.

8. Tata Motors Ltd. (TTM): Auto Manufacturer. Market cap of $15.18B. RSI(14) at 39.07. EPS have grown by 14.03% over the last five years vs. industry average at 2.97%. EPS projected to grow by 35.% over the next five years vs. industry average at 15.92%. Revenue has grown by 35.97% over the last five years vs. industry average at 5.03%. Capital spending has grown by 33.17% over the last five years vs. industry average at 6.17%. The company's cash flow has grown by 30.47% over the last five years vs. industry average at 2.35%. Short float at 2.07%, which implies a short ratio of 2.27 days. The stock has gained 56.01% over the last year.

9. TreeHouse Foods Inc. (THS): Processed & Packaged Goods Industry. Market cap of $1.76B. RSI(14) at 39.67. EPS have grown by 11.33% over the last five years vs. industry average at 9.68%. EPS projected to grow by 11.00% over the next five years vs. industry average at 7.99%. Revenue has grown by 16.83% over the last five years vs. industry average at 6.14%. Capital spending has grown by 10.96% over the last five years vs. industry average at 9.78%. The company's cash flow has grown by 16.66% over the last five years vs. industry average at 8.33%. Short float at 12.99%, which implies a short ratio of 21.86 days. The stock has gained 23.63% over the last year.

10. Capella Education Co. (CPLA): Education & Training Services Industry. Market cap of $931.04M. RSI(14) at 39.91. EPS have grown by 15.52% over the last five years vs. industry average at 15.27%. EPS projected to grow by 17.88% over the next five years vs. industry average at 14.79%. Revenue has grown by 23.24% over the last five years vs. industry average at 14.42%. Capital spending has grown by 16.86% over the last five years vs. industry average at 11.03%. The company's cash flow has grown by 18.74% over the last five years vs. industry average at 13.46%. Short float at 18.31%, which implies a short ratio of 8.72 days. The stock has lost -25.77% over the last year.

Source: 10 Oversold Stocks With Excellent Growth Prospects