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Comparing profitability margins between a company and its industry peers is a good way to gauge how well a company’s costs are under control and how efficient their operations are. It also measures their profitability.

We ran a screen on technically oversold stocks for those that appear highly profitable, beating their industry peers on gross, operating, and pretax margins.

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.



List sorted by RSI(14).

1. Sealed Air Corporation (NYSE:SEE): Packaging & Containers Industry. Market cap of $2.73B. RSI(14) at 32.81. TTM Gross Margin at 30.49% vs. Industry Gross Margin at 23.18%. TTM Operating Margin at 11.88% vs. Industry Operating Margin at 10.14%. TTM Pretax Margin at 7.14% vs. Industry Pretax Margin at 6.65%. The stock has performed poorly over the last month, losing 20.65%.

2. DeVry Inc. (NYSE:DV): Education & Training Services Industry. Market cap of $2.93B. RSI(14) at 33.50. TTM Gross Margin at 59.58% vs. Industry Gross Margin at 53.45%. TTM Operating Margin at 22.64% vs. Industry Operating Margin at 21.88%. TTM Pretax Margin at 22.66% vs. Industry Pretax Margin at 18.49%. Might be undervalued at current levels, with a PEG ratio at 0.87, and P/FCF ratio at 11.41. The stock has had a couple of great days, gaining 7.93% over the last week.

3. Companhia Paranaense de Energia (NYSE:ELP): Electric Utilities Industry. Market cap of $5.83B. RSI(14) at 34.12. TTM Gross Margin at 32.48% vs. Industry Gross Margin at 27.55%. TTM Operating Margin at 24.91% vs. Industry Operating Margin at 19.05%. TTM Pretax Margin at 23.48% vs. Industry Pretax Margin at 14.65%. The stock has performed poorly over the last month, losing 10.72%.

4. Tenaris SA (NYSE:TS): Steel & Iron Industry. Market cap of $18.69B. RSI(14) at 34.46. TTM Gross Margin at 41.26% vs. Industry Gross Margin at 34.69%. TTM Operating Margin at 18.54% vs. Industry Operating Margin at 17.93%. TTM Pretax Margin at 19.76% vs. Industry Pretax Margin at 16.52%. The stock has performed poorly over the last month, losing 27.3%.

5. Rofin-Sinar Technologies Inc. (NASDAQ:RSTI):
Scientific & Technical Instruments Industry. Market cap of $632.03M. RSI(14) at 34.50. TTM Gross Margin at 42.03% vs. Industry Gross Margin at 36.70%. TTM Operating Margin at 14.91% vs. Industry Operating Margin at 9.35%. TTM Pretax Margin at 14.63% vs. Industry Pretax Margin at 10.58%. The stock has performed poorly over the last month, losing 29.48%.

6. OYO Geospace Corp. (OYOG): Scientific & Technical Instruments Industry. Market cap of $433.58M. RSI(14) at 36.48. TTM Gross Margin at 46.93% vs. Industry Gross Margin at 34.69%. TTM Operating Margin at 25.97% vs. Industry Operating Margin at 17.93%. TTM Pretax Margin at 26.04% vs. Industry Pretax Margin at 16.52%. The stock has performed poorly over the last month, losing 31.72%.

7. Pzena Investment Management, Inc (NYSE:PZN): Asset Management Industry. Market cap of $323.50M. RSI(14) at 36.60. TTM Gross Margin at 53.05% vs. Industry Gross Margin at 46.42%. TTM Operating Margin at 52.54% vs. Industry Operating Margin at 35.41%. TTM Pretax Margin at 47.37% vs. Industry Pretax Margin at 35.75%. This is a risky stock that is significantly more volatile than the overall market (beta = 2.64). The stock has performed poorly over the last month, losing 15.8%.

8. Capella Education Co. (NASDAQ:CPLA): Education & Training Services Industry. Market cap of $481.40M. RSI(14) at 36.85. TTM Gross Margin at 65.91% vs. Industry Gross Margin at 53.47%. TTM Operating Margin at 22.29% vs. Industry Operating Margin at 21.87%. TTM Pretax Margin at 22.33% vs. Industry Pretax Margin at 18.46%. The stock is a short squeeze candidate, with a short float at 12.78% (equivalent to 7.65 days of average volume). The stock has performed poorly over the last month, losing 26.12%.

9. MedQuist Holdings Inc. (MEDH): Healthcare Information Services Industry. Market cap of $386.48M. RSI(14) at 38.13. TTM Gross Margin at 40.26% vs. Industry Gross Margin at 20.86%. TTM Operating Margin at 15.0% vs. Industry Operating Margin at 8.40%. TTM Pretax Margin at 6.91% vs. Industry Pretax Margin at 6.83%. The stock has had a couple of great days, gaining 11.49% over the last week.

10. Urban Outfitters Inc. (NASDAQ:URBN): Apparel Stores Industry. Market cap of $3.96B. RSI(14) at 38.13. TTM Gross Margin at 42.28% vs. Industry Gross Margin at 38.18%. TTM Operating Margin at 15.66% vs. Industry Operating Margin at 10.03%. TTM Pretax Margin at 15.84% vs. Industry Pretax Margin at 9.34%. The stock has performed poorly over the last month, losing 23.97%.

11. Strayer Education Inc. (NASDAQ:STRA): Education & Training Services Industry. Market cap of $1.11B. RSI(14) at 38.45. TTM Gross Margin at 63.60% vs. Industry Gross Margin at 53.47%. TTM Operating Margin at 31.52% vs. Industry Operating Margin at 21.87%. TTM Pretax Margin at 31.44% vs. Industry Pretax Margin at 18.46%. The stock is a short squeeze candidate, with a short float at 22.15% (equivalent to 7.97 days of average volume). The stock has had a couple of great days, gaining 5.72% over the last week.

12. Walgreen Co. (WAG): Drug Stores Industry. Market cap of $31.25B. RSI(14) at 38.49. TTM Gross Margin at 29.93% vs. Industry Gross Margin at 24.96%. TTM Operating Margin at 5.51% vs. Industry Operating Margin at 5.50%. TTM Pretax Margin at 5.31% vs. Industry Pretax Margin at 5.12%. The stock has performed poorly over the last month, losing 11.38%.

13. Akamai Technologies Inc. (NASDAQ:AKAM): Internet Information Providers Industry. Market cap of $3.81B. RSI(14) at 38.56. TTM Gross Margin at 81.52% vs. Industry Gross Margin at 68.15%. TTM Operating Margin at 25.31% vs. Industry Operating Margin at 24.94%. TTM Pretax Margin at 26.14% vs. Industry Pretax Margin at 14.87%. The stock has performed poorly over the last month, losing 13.42%.

14. First Republic Bank (NYSE:FRC): Money Center Banks Industry. Market cap of $3.17B. RSI(14) at 38.83. TTM Gross Margin at 84.93% vs. Industry Gross Margin at 70.91%. TTM Operating Margin at 58.77% vs. Industry Operating Margin at 39.06%. TTM Pretax Margin at 41.83% vs. Industry Pretax Margin at 22.35%. The stock has performed poorly over the last month, losing 13.64%.

15. MTS Systems Corp. (NASDAQ:MTSC): Scientific & Technical Instruments Industry. Market cap of $550.64M. RSI(14) at 39.18. TTM Gross Margin at 46.32% vs. Industry Gross Margin at 36.70%. TTM Operating Margin at 15.96% vs. Industry Operating Margin at 9.35%. TTM Pretax Margin at 14.84% vs. Industry Pretax Margin at 10.58%. The stock has performed poorly over the last month, losing 11.51%.

16. Medidata Solutions, Inc. (NASDAQ:MDSO): Healthcare Information Services Industry. Market cap of $383.25M. RSI(14) at 39.34. TTM Gross Margin at 74.07% vs. Industry Gross Margin at 45.08%. TTM Operating Margin at 13.93% vs. Industry Operating Margin at 12.47%. TTM Pretax Margin at 17.58% vs. Industry Pretax Margin at 9.73%. The stock is a short squeeze candidate, with a short float at 6.44% (equivalent to 6.02 days of average volume). The stock has had a couple of great days, gaining 6.74% over the last week.

17. Mercury Computer Systems, Inc. (NASDAQ:MRCY): Computer Peripherals Industry. Market cap of $417.34M. RSI(14) at 39.52. TTM Gross Margin at 59.58% vs. Industry Gross Margin at 36.69%. TTM Operating Margin at 11.17% vs. Industry Operating Margin at 9.33%. TTM Pretax Margin at 11.62% vs. Industry Pretax Margin at 10.52%. The stock has performed poorly over the last month, losing 18.63%.

18. QEP Resources, Inc. (NYSE:QEP): Oil & Gas Drilling & Exploration Industry. Market cap of $6.03B. RSI(14) at 39.62. TTM Gross Margin at 58.39% vs. Industry Gross Margin at 32.67%. TTM Operating Margin at 22.63% vs. Industry Operating Margin at 14.96%. TTM Pretax Margin at 19.17% vs. Industry Pretax Margin at 15.78%. The stock is currently stuck in a downtrend, trading 5.52% below its SMA20, 12.92% below its SMA50, and 11.45% below its SMA200. The stock has performed poorly over the last month, losing 22.16%.

19. Wright Express Corp. (WXS): Business Services Industry. Market cap of $1.53B. RSI(14) at 39.80. TTM Gross Margin at 48.67% vs. Industry Gross Margin at 47.85%. TTM Operating Margin at 40.24% vs. Industry Operating Margin at 26.12%. TTM Pretax Margin at 31.53% vs. Industry Pretax Margin at 26.39%. The stock has performed poorly over the last month, losing 19.94%.

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: 19 Highly Profitable Stocks Trading In Oversold Territory