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

Looking for potentially undervalued stocks but don’t know where to start? Here are a few ideas to get you started.

We ran a screen on technically oversold stocks, with RSI(14) below 40. We screened these stocks for those with high cash relative to their operating expenses. We calculated the average quarterly operating expense over the last year and found companies with high cash relative to their expenses, with at least four quarters of expenses worth of cash.

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.

(Click chart for more detail)

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

List sorted by market cap.

1. Oracle Corporation (NYSE:ORCL): Develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. Market cap of $147.15B. RSI(14) at 26.56. Average quarterly operating expense over the last five quarters at $5,856.2M, vs. most recent cash and short-term investments at $31,660M, implies a Cash / Avg. Operating Expense ratio at 5.41. It's been a rough couple of days for the stock, losing 5.38% over the last week.

2. VMware, Inc. (NYSE:VMW): Provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $36.02B. RSI(14) at 24.06. Average quarterly operating expense over the last five quarters at $702.19M, vs. most recent cash and short-term investments at $3,976.7M, implies a Cash / Avg. Operating Expense ratio at 5.66. It's been a rough couple of days for the stock, losing 6.19% over the last week.

3. Corning Inc. (NYSE:GLW): Manufactures and processes specialty glass and ceramics products worldwide. Market cap of $19.77B. RSI(14) at 35.63. Average quarterly operating expense over the last five quarters at $1,392.4M, vs. most recent cash and short-term investments at $6,421M, implies a Cash / Avg. Operating Expense ratio at 4.61. The stock has performed poorly over the last month, losing 16.13%.

*Accounting data sourced from Google 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: 3 Oversold Large-Cap Stocks With High Cash Relative To Expenses