Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Company debt should always be on the minds of stock investors. High levels of debt can put a wedge between firm value and the value to shareholders by directing cash flows towards high interest payments (and away from dividends). It also decreases the firm’s financial flexibility.

We ran a screen on large-cap companies that are technically oversold, with RSI(14) below 40. We screened these companies for those that have low debt, with most recent quarter total debt to assets below 0.20.

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.

click on image to enlarge

Do you think these companies should be trading higher? Use this list as a starting-off point for your own analysis.

List sorted by market cap.

1. Walgreen Co. (NYSE:WAG): Drug Stores Industry. Market cap of $35.89B. MRQ total debt to assets at 0.09. RSI(14) at 33.36. It's been a rough couple of days for the stock, losing 5.95% over the last week.

2. Wipro Ltd. (NYSE:WIT): Information Technology Services Industry. Market cap of $30.35B. MRQ total debt to assets at 0.15. RSI(14) at 39.35. The stock has lost 5.94% over the last year.

3. Stryker Corp. (NYSE:SYK): Medical Instruments & Supplies Industry. Market cap of $22.36B. MRQ total debt to assets at 0.09. RSI(14) at 38.97. The stock has gained 23.8% over the last year.

4. Yahoo! Inc. (NASDAQ:YHOO): Internet Information Providers Industry. Market cap of $17.71B. MRQ total debt to assets at 0.01. RSI(14) at 36.61. It's been a rough couple of days for the stock, losing 7.11% over the last week.

5. The Allstate Corporation (NYSE:ALL): Property & Casualty Insurance Industry. Market cap of $15.02B. MRQ total debt to assets at 0.05. RSI(14) at 37.30. The stock has gained 5.2% over the last year.

6. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $14.63B. MRQ total debt to assets at 0.00. RSI(14) at 38.10. The stock has lost 48.83% over the last year.

7. Adobe Systems Inc. (NASDAQ:ADBE): Application Software Industry. Market cap of $14.60B. MRQ total debt to assets at 0.18. RSI(14) at 39.55. The stock has gained 6.83% over the last year.

8. Intuit Inc. (NASDAQ:INTU): Application Software Industry. Market cap of $14.42B. MRQ total debt to assets at 0.18. RSI(14) at 32.07. The stock has gained 24.93% over the last year.

9. Ingersoll-Rand Plc (NYSE:IR): Diversified Machinery Industry. Market cap of $13.59B. MRQ total debt to assets at 0.18. RSI(14) at 31.51. The stock is currently stuck in a downtrend, trading 9.83% below its SMA20, 12.28% below its SMA50, and 10.76% below its SMA200. It's been a rough couple of days for the stock, losing 9.29% over the last week.

10. Turkcell Iletisim Hizmetleri AS (NYSE:TKC): Wireless Communications Industry. Market cap of $11.26B. MRQ total debt to assets at 0.18. RSI(14) at 32.13. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.77%, current ratio at 2.88, and quick ratio at 2.86. The stock has lost 5.82% over the last year.

11. Hartford Financial Services Group Inc. (NYSE:HIG): Property & Casualty Insurance Industry. Market cap of $10.76B. MRQ total debt to assets at 0.02. RSI(14) at 39.52. This is a risky stock that is significantly more volatile than the overall market (beta = 3.04). The stock has gained 6.15% over the last year.

*Total debt to assets data sourced from Screener.co, all other data sourced from Finviz.

Source: 11 Oversold Large Caps With Low Debt