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One important consideration for stocks is the corporate governance policies of the company, such as its board composition and shareholder rights, which have important implications to the company’s performance.

RiskMetrics Group gives ratings for four areas of corporate governance, on risks related to the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on technically oversold stocks (with RSI(14) below 40) that appear undervalued to earnings growth (with PEG below 1) for those that received “low risk” ratings on all four corporate governance areas covered by RiskMetrics.

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.

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Do you think these companies are being undervalued? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Unitedhealth Group, Inc. (UNH): Health Care Plans Industry. Market cap of $53.77B. RSI(14) at 30.60. PEG at 0.95. According to RiskMetrics, the company has "low risk" in all four categories. It has been a rough couple of days for the stock, losing 5.91% over the last week.

2. Illinois Tool Works Inc. (ITW): Diversified Machinery Industry. Market cap of $24.90B. RSI(14) at 21.31. PEG at 0.99. According to RiskMetrics, the company has "low risk" in all four categories. The stock is currently stuck in a downtrend, trading 11.61% below its SMA20, 10.96% below its SMA50, and 6.54% below its SMA200. It has been a rough couple of days for the stock, losing 12.59% over the last week.

3. Tenet Healthcare Corp. (THC): Hospitals Industry. Market cap of $2.72B. RSI(14) at 27.98. PEG at 0.16. According to RiskMetrics, the company has "low risk" in all four categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.3). The stock is currently stuck in a downtrend, trading 11.67% below its SMA20, 12.77% below its SMA50, and 12.99% below its SMA200. It's been a rough couple of days for the stock, losing 11.18% over the last week.

4. HEALTHSOUTH Corp. (HLS): Specialized Health Services Industry. Market cap of $2.32B. RSI(14) at 33.34. PEG at 0.24. According to RiskMetrics, the company has "low risk" in all four categories. The stock is a short squeeze candidate, with a short float at 8.74% (equivalent to 8.96 days of average volume). The stock has gained 31.82% over the last year.

5. Diodes Incorporated (DIOD): Semiconductor Circuits Industry. Market cap of $1.07B. RSI(14) at 31.52. PEG at 0.94. According to RiskMetrics, the company has "low risk" in all four categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.12). The stock is a short squeeze candidate, with a short float at 6.06% (equivalent to 6.15 days of average volume). It has been a rough couple of days for the stock, losing 8.76% over the last week.

6. Amkor Technology, Inc. (AMKR): Semiconductor Circuits Industry. Market cap of $1.06B. RSI(14) at 36.86. PEG at 0.80. According to RiskMetrics, the company has "low risk" in all four categories. This is a risky stock that is significantly more volatile than the overall market (beta = 2.43). The stock is a short squeeze candidate, with a short float at 18.36% (equivalent to 7.14 days of average volume). The stock is currently stuck in a downtrend, trading 8.9% below its SMA20, 11.66% below its SMA50, and 23.2% below its SMA200. It has been a rough couple of days for the stock, losing 9.03% over the last week.

7. Nelnet Inc. (NNI): Credit Services Industry. Market cap of $977.36M. RSI(14) at 32.24. PEG at 0.46. According to RiskMetrics, the company has "low risk" in all four categories. The stock is currently stuck in a downtrend, trading 6.62% below its SMA20, 5.8% below its SMA50, and 9.24% below its SMA200. The stock has gained 3.38% over the last year.

8. Invesco Mortgage Capital Inc. (IVR):
Mortgage Investment Industry. Market cap of $950.61M. RSI(14) at 36.25. PEG at 0.92. According to RiskMetrics, the company has "low risk" in all four categories. It has been a rough couple of days for the stock, losing 7.64% over the last week.

*RiskMetrics data sourced from Yahoo! Finance, 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: 8 Oversold, Undervalued Stocks With Good Corporate Governance