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If you're looking for rebound ideas, the following list might offer a good starting point.

To construct this list we looked for stocks with market caps above $300M and with RSI(14) values below 40 – which is generally considered to be an oversold condition. Additionally, we examined the institutional flows and focused on those companies that experienced significant net inflows relative to the floating shares.

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.


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


Big money managers think these stocks have rebound potential--do you agree? Full details below.

1. Ternium S.A. (NYSE:TX):
Steel & Iron Industry. Market cap of $6.12B. RSI(14) at 27.56. On a net basis, institutional investors purchased 17.7M shares during the current quarter - which is equivalent to 33.89% of the floating shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has lost 11.99% over the last year.

2. Financial Engines, Inc. (NASDAQ:FNGN): Diversified Investments Industry. Market cap of $1.07B. RSI(14) at 24.41. On a net basis, institutional investors purchased 5.2M shares during the current quarter - which is equivalent to 15.23% of the floating shares. The stock has performed poorly over the last month, losing 14.92%.

3. Brown Shoe Co. Inc. (NYSE:BWS):
Specialty Retail, Other Industry. Market cap of $433.20M. RSI(14) at 26.77. On a net basis, institutional investors purchased 5.6M shares during the current quarter - which is equivalent to 13.8% of the floating shares. The stock is a short squeeze candidate, with a short float at 19.19% (equivalent to 11.92 days of average volume). It's been a rough couple of days for the stock, losing 10.45% over the last week.

4. Frontline Ltd. (NYSE:FRO): Shipping Industry. Market cap of $1.39B. RSI(14) at 26.57. On a net basis, institutional investors purchased 7.1M shares during the current quarter - which is equivalent to 13.78% of the floating shares. The stock is a short squeeze candidate, with a short float at 13.36% (equivalent to 5.66 days of average volume). It's been a rough couple of days for the stock, losing 5.21% over the last week.

5. CapLease, Inc. (NYSE:LSE): REIT. Market cap of $326.01M. RSI(14) at 26.19. On a net basis, institutional investors purchased 8.0M shares during the current quarter - which is equivalent to 13.32% of the floating shares. The stock is currently stuck in a downtrend, trading -8.95% below its SMA20, -11.37% below its SMA50, and -14.% below its SMA200. It's been a rough couple of days for the stock, losing 6.45% over the last week.

6. Wintrust Financial Corporation (NASDAQ:WTFC): Regional Banks Industry. Market cap of $1.10B. RSI(14) at 23.79. On a net basis, institutional investors purchased 3.9M shares during the current quarter - which is equivalent to 11.44% of the floating shares. The stock is a short squeeze candidate, with a short float at 16.61% (equivalent to 20.17 days of average volume). The stock has lost 13.64% over the last year.

*Data sourced from Fidelity, Yahoo! Finance and Finviz.

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

Source: 6 Oversold Stocks With Significant Institutional Buying