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Value investors look for opportunities to buy stocks that are trading at significant discounts to their fair value, with the assumption that they’ll move up to their fair value in the near future. One proxy for fair value is analyst target price.

We ran a screen on technically oversold stocks for those trading at steep discounts to their analyst target prices, which may indicate that they are undervalued.

But because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with 5 or more analyst ratings.

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.

Do you think these stocks have been oversold? Use this list as a starting-off point for your own analysis.

List sorted by potential upside implied by target price.

1. Xenoport, Inc. (XNPT): Focuses on developing and commercializing internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. Market cap of $175.43M. RSI(14) at 33.44. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $7.00. This implies a current upside of 32.83% from current levels around $5.27. The stock is a short squeeze candidate, with a short float at 9.8% (equivalent to 9.57 days of average volume). It's been a rough couple of days for the stock, losing 17.64% over the last week.

2. Optimer Pharmaceuticals, Inc. (OPTR): Focuses on discovering, developing, and commercializing hospital specialty products worldwide. Market cap of $522.48M. RSI(14) at 34.98. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $14.50. This implies a current upside of 32.30% from current levels around $10.96. The stock is currently stuck in a downtrend, trading 18.81% below its SMA20, 17.69% below its SMA50, and 8.42% below its SMA200. It's been a rough couple of days for the stock, losing 21.79% over the last week.

3. Tornier N.V. (TRNX): Operates as a medical device company that designs, manufactures, and markets devices for joint replacement and soft tissue repair that enable surgical specialists to improve patients' lives by restoring motion and physical vitality. Market cap of $656.10M. RSI(14) at 27.88. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $26.00. This implies a current upside of 30.33% from current levels around $19.95. The stock is currently stuck in a downtrend, trading 22.96% below its SMA20, 21.41% below its SMA50, and 25.64% below its SMA200. It's been a rough couple of days for the stock, losing 21.25% over the last week.

4. NeoPhotonics Corporation (NPTN): Engages in the design and manufacture of photonic integrated circuit (PIC) based modules and subsystems for bandwidth-intensive, high-speed communications networks. Market cap of $101.47M. RSI(14) at 31.82. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $5.00. This implies a current upside of 29.87% from current levels around $3.85. The stock is currently stuck in a downtrend, trading 22.55% below its SMA20, 33.04% below its SMA50, and 54.29% below its SMA200. It's been a rough couple of days for the stock, losing 17.67% over the last week.

5. Endeavour International Corporation (END): Engages in the acquisition, exploration, development, and production of crude oil and natural gas in the United States and the United Kingdom. Market cap of $245.15M. RSI(14) at 36.15. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 29.70% from current levels around $7.71. The stock is a short squeeze candidate, with a short float at 17.3% (equivalent to 13.55 days of average volume). The stock is currently stuck in a downtrend, trading 25.51% below its SMA20, 24.11% below its SMA50, and 44.46% below its SMA200. It's been a rough couple of days for the stock, losing 26.41% over the last week.

6. Vanguard Health Systems Inc. (VHS): Engages in the ownership and operation of acute care hospitals, outpatient facilities, and related health plans primarily in urban and suburban markets in the United States. Market cap of $675.51M. RSI(14) at 36.81. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $12.00. This implies a current upside of 29.45% from current levels around $9.27. The stock is currently stuck in a downtrend, trading 11.08% below its SMA20, 16.87% below its SMA50, and 33.65% below its SMA200.

7. Green Mountain Coffee Roasters Inc. (GMCR): Engages in the specialty coffee and coffee maker business. Market cap of $10.26B. RSI(14) at 38.09. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $90.00. This implies a current upside of 28.02% from current levels around $70.30. The stock is currently stuck in a downtrend, trading 7.37% below its SMA20, 25.87% below its SMA50, and 12.5% below its SMA200. The stock has had a couple of great days, gaining 8.68% over the last week. The stock has performed poorly over the last month, losing 28.41%.

8. Ducommun Inc. (DCO): Designs, engineers, and manufactures aerostructure, and electromechanical components and subassemblies. Market cap of $129.85M. RSI(14) at 31.03. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $16.00. This implies a current upside of 27.19% from current levels around $12.58. The stock is currently stuck in a downtrend, trading 11.54% below its SMA20, 19.13% below its SMA50, and 37.15% below its SMA200. It's been a rough couple of days for the stock, losing 6.17% over the last week.

9. Spansion Inc. (CODE): Engages in the design, development, manufacture, and sale of flash memory semiconductors worldwide. Market cap of $603.65M. RSI(14) at 31.05. Of the 6 analysts that have set a target price on the stock, the lowest price target stands at $13.00. This implies a current upside of 26.71% from current levels around $10.26. The stock is currently stuck in a downtrend, trading 19.28% below its SMA20, 24.1% below its SMA50, and 43.34% below its SMA200. The stock has performed poorly over the last month, losing 26.45%.

10. DFC Global Corp. (DLLR): Provides retail financial services to unbanked and under-banked consumers, and small businesses. Market cap of $842.50M. RSI(14) at 37.21. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $25.00. This implies a current upside of 26.65% from current levels around $19.74. The stock is a short squeeze candidate, with a short float at 6.9% (equivalent to 5.69 days of average volume). The stock is currently stuck in a downtrend, trading 9.99% below its SMA20, 12.26% below its SMA50, and 10.12% below its SMA200. It's been a rough couple of days for the stock, losing 8.96% over the last week.

11. Hanger Orthopedic Group Inc. (HGR): Engages in the ownership and operation of orthotic and prosthetic (O&P) patient-care centers in the United States. Market cap of $541.19M. RSI(14) at 33.37. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $22.00. This implies a current upside of 26.29% from current levels around $17.42. The stock is a short squeeze candidate, with a short float at 5.91% (equivalent to 6.64 days of average volume). The stock is currently stuck in a downtrend, trading 16.41% below its SMA20, 13.98% below its SMA50, and 29.94% below its SMA200. The stock has performed poorly over the last month, losing 17.26%.

12. DigitalGlobe, Inc. (DGI): Provides commercial earth imagery products and solutions. Market cap of $775.49M. RSI(14) at 33.54. Of the 11 analysts that have set a target price on the stock, the lowest price target stands at $22.00. This implies a current upside of 26.15% from current levels around $17.44. The stock is currently stuck in a downtrend, trading 14.35% below its SMA20, 16.95% below its SMA50, and 32.72% below its SMA200. It's been a rough couple of days for the stock, losing 8.16% over the last week.

13. AsiaInfo-Linkage,Inc. (ASIA): Provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People's Republic of China. Market cap of $561.05M. RSI(14) at 37.21. Of the 17 analysts that have set a target price on the stock, the lowest price target stands at $10.00. This implies a current upside of 25.47% from current levels around $7.97. The stock is a short squeeze candidate, with a short float at 23.75% (equivalent to 9.82 days of average volume). The stock is currently stuck in a downtrend, trading 18.21% below its SMA20, 17.74% below its SMA50, and 49.45% below its SMA200. The stock has performed poorly over the last month, losing 19%.

14. Wet Seal Inc. (WTSLA): Operates stores that sell fashionable and contemporary apparel and accessory items designed for female customers. Market cap of $279.58M. RSI(14) at 27.63. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $4.00. This implies a current upside of 25.39% from current levels around $3.19. Might be undervalued at current levels, with a PEG ratio at 0.76, and P/FCF ratio at 10.36. The stock is a short squeeze candidate, with a short float at 13.35% (equivalent to 5.42 days of average volume). The stock is currently stuck in a downtrend, trading 24.94% below its SMA20, 30.58% below its SMA50, and 28.75% below its SMA200. It's been a rough couple of days for the stock, losing 25.9% over the last week.

15. Shutterfly, Inc. (SFLY): Provides an Internet-based social expression and personal publishing service that enables consumers to share, print, and preserve their memories through the medium of photography. Market cap of $1.28B. RSI(14) at 28.19. Of the 9 analysts that have set a target price on the stock, the lowest price target stands at $50.00. This implies a current upside of 25.31% from current levels around $39.90. The stock is a short squeeze candidate, with a short float at 18.14% (equivalent to 6.75 days of average volume). The stock is currently stuck in a downtrend, trading 16.46% below its SMA20, 20.91% below its SMA50, and 25.22% below its SMA200. It's been a rough couple of days for the stock, losing 9.26% over the last week.

16. GeoEye, Inc. (GEOY): Provides earth imagery and imagery information products, as well as image processing services to the United States and foreign government defense and intelligence organizations, domestic federal and foreign civil agencies, and commercial customers. Market cap of $559.19M. RSI(14) at 29.55. Of the 7 analysts that have set a target price on the stock, the lowest price target stands at $33.00. This implies a current upside of 24.95% from current levels around $26.41. The stock is a short squeeze candidate, with a short float at 6.33% (equivalent to 5.76 days of average volume). The stock is currently stuck in a downtrend, trading 22.33% below its SMA20, 21.09% below its SMA50, and 30.15% below its SMA200. It's been a rough couple of days for the stock, losing 7.52% over the last week.

17. NuVasive, Inc. (NUVA): Engages in the design, development, and marketing of minimally disruptive surgical products and procedures for the spine. Market cap of $574.42M. RSI(14) at 37.73. Of the 20 analysts that have set a target price on the stock, the lowest price target stands at $19.00. This implies a current upside of 24.92% from current levels around $15.21. The stock is currently stuck in a downtrend, trading 11.39% below its SMA20, 21.95% below its SMA50, and 45.13% below its SMA200. The stock has performed poorly over the last month, losing 15.69%.

18. The GEO Group, Inc. (GEO): Provides government-outsourced services specializing in the management of correctional, detention, and mental health and residential treatment facilities in the United States, Australia, South Africa, and the United Kingdom. Market cap of $1.06B. RSI(14) at 36.09. Of the 8 analysts that have set a target price on the stock, the lowest price target stands at $22.00. This implies a current upside of 24.65% from current levels around $17.65. The stock is a short squeeze candidate, with a short float at 6.38% (equivalent to 5.55 days of average volume). The stock is currently stuck in a downtrend, trading 6.55% below its SMA20, 10.93% below its SMA50, and 24.78% below its SMA200. The stock has lost 33.78% over the last year.

19. OmniVision Technologies Inc. (OVTI): Designs, develops, and markets semiconductor image-sensor devices. Market cap of $820.23M. RSI(14) at 37.77. Of the 10 analysts that have set a target price on the stock, the lowest price target stands at $18.00. This implies a current upside of 24.65% from current levels around $14.44. The stock is currently stuck in a downtrend, trading 15.69% below its SMA20, 16.52% below its SMA50, and 49.13% below its SMA200. It's been a rough couple of days for the stock, losing 12.3% over the last week.

20. Complete Genomics, Inc. (GNOM): Develops and commercializes a DNA sequencing platform for human genome sequencing and analysis. Market cap of $144.85M. RSI(14) at 33.24. Of the 5 analysts that have set a target price on the stock, the lowest price target stands at $6.00. This implies a current upside of 23.97% from current levels around $4.84. The stock is a short squeeze candidate, with a short float at 6.39% (equivalent to 5.91 days of average volume). The stock is currently stuck in a downtrend, trading 15.96% below its SMA20, 31.47% below its SMA50, and 57.43% below its SMA200. It's been a rough couple of days for the stock, losing 15.93% over the last week.

*Target price data sourced from Thomson/First Call (via Yahoo! Finance), all other data sourced from Finviz.

Source: 20 Oversold Stocks Deeply Undervalued By Target Price