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If you prefer to take advantage of market pullbacks by positioning yourself in attractively priced stocks, then you may find an interesting group of companies in this list you to keep an eye on.

For this list we wanted to focus on oversold stocks, with low debt levels relative to cash holdings and with profitable profiles relative to past performance. In order to achieve this we looked at the following metrics:

  • RSI (14) below 40
  • Cash holdings > long term liabilities
  • TTM net profit margin > prior TTM net profit margin

Once we had gathered this universe of stocks, we focused only on those that were significantly undervalued by analysts' estimates.

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.

Considering this data, which of stocks would you be more likely to put your money work with?

1. Teradyne Inc. (NYSE:TER): Semiconductor Equipment & Materials Industry. Market cap of $2.52B. RSI(14) at 37.67. This stock has a potential upside of 34.55%, given its target price of $19.04 vs. its current price of $14.15. TTM net profit margin 24.01% vs. prior ttm 0.58%. Cash and equivalents at $855.84M vs. long-term liabilities of $151.75M. The stock is a short squeeze candidate, with a short float at 12.47% (equivalent to 5.95 days of average volume). The stock has performed poorly over the last month, losing 15.2%.

2. QLogic Corp. (NASDAQ:QLGC): Semiconductor Industry. Market cap of $1.61B. RSI(14) at 38.3. This stock has a potential upside of 31.74%, given its target price of $20.39 vs. its current price of $15.48. TTM net profit margin 23.29% vs. prior ttm 10.01%. Cash and equivalents at $384.08M vs. long-term liabilities of $0.0M. The stock has lost 14.15% over the last year.

3. Houston American Energy Corp. (NYSEMKT:HUSA): Independent Oil & Gas Industry. Market cap of $476.45M. RSI(14) at 36.48. This stock has a potential upside of 30.72%, given its target price of $20.0 vs. its current price of $15.3. TTM net profit margin 123.37% vs. prior ttm 13.58%. Cash and equivalents at $22.58M vs. long-term liabilities of $0.0M. The stock is a short squeeze candidate, with a short float at 19.82% (equivalent to 26.55 days of average volume). The stock has gained 17.23% over the last year.

4. Applied Materials Inc. (NASDAQ:AMAT): Semiconductor Equipment & Materials Industry. Market cap of $16.37B. RSI(14) at 36.82. This stock has a potential upside of 30.33%, given its target price of $16.5 vs. its current price of $12.66. TTM net profit margin 14.48% vs. prior ttm 6.32%. Cash and equivalents at $3.31B vs. long-term liabilities of $204.0M. The stock has performed poorly over the last month, losing 12.84%.

5. Semtech Corp. (NASDAQ:SMTC): Semiconductor Industry. Market cap of $1.59B. RSI(14) at 38.66. This stock has a potential upside of 29.74%, given its target price of $32.5 vs. its current price of $25.05. TTM net profit margin 17.76% vs. prior ttm 2.08%. Cash and equivalents at $264.43M vs. long-term liabilities of $0.0M. The stock is a short squeeze candidate, with a short float at 6.92% (equivalent to 7.93 days of average volume). The stock has performed poorly over the last month, losing 13.88%.

6. HFF Inc. (NYSE:HF): Mortgage Investment Industry. Market cap of $494.81M. RSI(14) at 38.86. This stock has a potential upside of 28.48%, given its target price of $18.0 vs. its current price of $14.01. TTM net profit margin 12.79% vs. prior ttm 8.65%. Cash and equivalents at $72.35M vs. long-term liabilities of $0.21M. This is a risky stock that is significantly more volatile than the overall market (beta = 2.42). The stock has performed poorly over the last month, losing 16.96%.

7. Autodesk, Inc. (NASDAQ:ADSK): Technical & System Software Industry. Market cap of $8.24B. RSI(14) at 30.54. This stock has a potential upside of 27.09%, given its target price of $46.91 vs. its current price of $36.91. TTM net profit margin 12.19% vs. prior ttm 7.21%. Cash and equivalents at $1.35B vs. long-term liabilities of $0.0M. This is a risky stock that is significantly more volatile than the overall market (beta = 2.1). The stock has performed poorly over the last month, losing 19.58%.

8. Lam Research Corporation (NASDAQ:LRCX): Semiconductor Equipment & Materials Industry. Market cap of $5.23B. RSI(14) at 31.88. This stock has a potential upside of 26.9%, given its target price of $54.05 vs. its current price of $42.59. TTM net profit margin 23.19% vs. prior ttm 7.14%. Cash and equivalents at $1.26B vs. long-term liabilities of $15.95M. The stock has gained 0.41% over the last year.

9. IMAX Corporation (NYSE:IMAX): Photographic Equipment & Supplies Industry. Market cap of $1.87B. RSI(14) at 36.05. This stock has a potential upside of 26.1%, given its target price of $37.67 vs. its current price of $29.87. TTM net profit margin 33.54% vs. prior ttm 16.29%. Cash and equivalents at $17.38M vs. long-term liabilities of $0.0M. The stock has performed poorly over the last month, losing 20.42%.

10. Micrel Inc. (NASDAQ:MCRL): Semiconductor Industry. Market cap of $618.59M. RSI(14) at 22.73. This stock has a potential upside of 26.0%, given its target price of $12.63 vs. its current price of $10.02. TTM net profit margin 16.82% vs. prior ttm 10.23%. Cash and equivalents at $121.6M vs. long-term liabilities of $0.0M. The stock is a short squeeze candidate, with a short float at 6.52% (equivalent to 6.88 days of average volume). The stock has performed poorly over the last month, losing 17.56%.

*Data sourced from Screener.co and Finviz.

Source: 10 Oversold, Low Debt and Profitable Stocks Undervalued by Analysts