Do you like to invest with a stock's technical signals? One idea is to consider whether a stock is technically oversold, measured by the relative strength index.
We ran a screen on technically oversold stocks, with RSI(14) below 40. We then screened for those trading under $5 a share. Finally, we screened for those with optimism from company insiders, with significant net insider purchases over the last six months.
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.
Do you think these stocks are oversold and ready for a turnaround? Use this list as a starting point for your own analysis.
1. U.S. Auto Parts Network, Inc. (PRTS): Operates as a distributor of aftermarket auto parts and accessories in the United States. Price at $3.65. RSI(14) at 31.08. Over the last six months, insiders were net buyers of 109,878 shares, which represents about 0.75% of the company's 14.71M share float.
2. TRC Companies Inc. (TRR): Provides consulting, engineering, and construction management services in the United States. Price at $4.57. RSI(14) at 32.27. Over the last six months, insiders were net buyers of 756,598 shares, which represents about 3.5% of the company's 21.60M share float.
3. Yongye International, Inc. (YONG): Engages in the research, development, manufacture, and sale of fulvic acid based liquid and powder nutrient compounds for plants and animals, which are used in the agriculture industry in the People's Republic of China. Price at $3.51. RSI(14) at 39.92. Over the last six months, insiders were net buyers of 2,128,040 shares, which represents about 5.68% of the company's 37.48M share float.
4. Zogenix, Inc. (ZGNX): Engages in the development and commercialization of products for the treatment of central nervous system disorders and pain. Price at $1.95. RSI(14) at 36.03. Over the last six months, insiders were net buyers of 8,400,000 shares, which represents about 21.48% of the company's 39.11M share float.
*Insider 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.