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Here we report on three stocks with profitability that may be underestimated by the market. We searched for technically oversold stocks that are also trading near their 52-week lows. These stocks are also beating their industry peers on trailing-12-month gross, operating, and pretax margins.

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.



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.


Do you think the market is recognizing these companies’ profitability? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. VimpelCom Ltd. (NASDAQ:VIP): Wireless Communications Industry. Market cap of $16.62B. The stock is trading 1.83% above its 52-week low. RSI(14) at 33.94. TTM Gross Margin at 71.08% vs. Industry Gross Margin at 59.46%. TTM Operating Margin at 25.98% vs. Industry Operating Margin at 18.88%. TTM Pretax Margin at 22.54% vs. Industry Pretax Margin at 12.18%. The stock has lost 13.26% over the last year.

2. Artio Global Investors Inc. (NYSE:ART): Asset Management Industry. Market cap of $673.25M. The stock is trading 2.94% above its 52-week low. RSI(14) at 23.64. TTM Gross Margin at 51.13% vs. Industry Gross Margin at 46.02%. TTM Operating Margin at 50.27% vs. Industry Operating Margin at 34.71%. TTM Pretax Margin at 50.24% vs. Industry Pretax Margin at 31.97%. The stock is a short squeeze candidate, with a short float at 8.55% (equivalent to 9.66 days of average volume). The stock has performed poorly over the last month, losing 15.48%.

3. The Dolan Company (NYSE:DM):
Publishing Industry. Market cap of $257.23M. The stock is trading 2.93% above its 52-week low. RSI(14) at 28.14. TTM Gross Margin at 59.52% vs. Industry Gross Margin at 46.82%. TTM Operating Margin at 15.91% vs. Industry Operating Margin at 15.73%. TTM Pretax Margin at 15.19% vs. Industry Pretax Margin at 10.32%. The stock might be undervalued at current levels, with a PEG ratio at 0.65, and P/FCF ratio at 6.22. The stock has performed poorly over the last month, losing 13.75%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

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

Source: 3 Highly Profitable, Oversold Stocks for a Watchlist