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Interested in finding stocks that may be trading below their fair value? For ideas, we ran a stock screen you may be interested in.

We began by screening for stocks that are technically oversold, with RSI(14) below 40. We then screened these stocks for those that are trading at significant discounts to their Graham Number.

The Graham Number was created by the "godfather of value investing" Benjamin Graham as a calculation for maximum fair value. It is based off of a stock's EPS and book value per share (BVPS).

Graham Number = SQRT(22.5 x TTM EPS x MRQ BVPS)

The equation assumes that P/E should not be higher than 15 and P/BV should not be higher than 1.5. Stocks trading well below their Graham Number may be undervalued.

‪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 are poised for a rebound? Use this list as a starting point for your own analysis.

List sorted alphabetically.

1. Entergy Corporation (NYSE:ETR): Operates as an integrated energy company in the United States. RSI(14) at 33.32. Diluted TTM earnings per share at 7.55, and a MRQ book value per share value at 50.8, implies a Graham Number fair value = sqrt(22.5*7.55*50.8) = $92.90. Based on the stock's price at $68.61, this implies a potential upside of 35.4% from current levels.

2. hhgregg, Inc. (NYSE:HGG): Operates as a specialty retailer of consumer electronics, home appliances, and related services. RSI(14) at 35.86. Diluted TTM earnings per share at 1.17, and a MRQ book value per share value at 7.83, implies a Graham Number fair value = sqrt(22.5*1.17*7.83) = $14.36. Based on the stock's price at $10.44, this implies a potential upside of 37.52% from current levels.

3. Monster Worldwide, Inc. (NYSE:MWW): Provides online employment solutions worldwide. RSI(14) at 39.61. Diluted TTM earnings per share at 0.43, and a MRQ book value per share value at 9.9, implies a Graham Number fair value = sqrt(22.5*0.43*9.9) = $9.79. Based on the stock's price at $7.27, this implies a potential upside of 34.62% from current levels.

4. Perfumania Holdings, Inc. (NASDAQ:PERF): Operates as a wholesale distributor and specialty retailer of perfumes and fragrances in the United States and Puerto Rico. RSI(14) at 36.17. Diluted TTM earnings per share at 0.98, and a MRQ book value per share value at 6.3, implies a Graham Number fair value = sqrt(22.5*0.98*6.3) = $11.79. Based on the stock's price at $10.12, this implies a potential upside of 16.46% from current levels.

5. PharMerica Corporation (NYSE:PMC): Operates as an institutional pharmacy services company in the United States. RSI(14) at 26.78. Diluted TTM earnings per share at 0.69, and a MRQ book value per share value at 13.76, implies a Graham Number fair value = sqrt(22.5*0.69*13.76) = $14.62. Based on the stock's price at $12.16, this implies a potential upside of 20.2% from current levels.

6. Star Gas Partners LP (NYSE:SGU): Operates as a home heating oil distributor and services provider in the United States. RSI(14) at 36.2. Diluted TTM earnings per share at 0.36, and a MRQ book value per share value at 4.19, implies a Graham Number fair value = sqrt(22.5*0.36*4.19) = $5.83. Based on the stock's price at $4.55, this implies a potential upside of 28.04% from current levels.

7. EXCO Resources Inc. (NYSE:XCO): Engages in the exploration, exploitation, development, and production of onshore North American oil and natural gas properties with a focus on shale resource plays. RSI(14) at 38.43. Diluted TTM earnings per share at 0.54, and a MRQ book value per share value at 8.07, implies a Graham Number fair value = sqrt(22.5*0.54*8.07) = $9.90. Based on the stock's price at $7.29, this implies a potential upside of 35.83% from current levels.

*BVPS and EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 7 Oversold Stocks Undervalued By The Graham Number