5 Oversold Stocks With High Profitability

by: Kapitall

Do you like to invest in stocks that you think aren't getting enough positive attention? For ideas on how to find underestimated names, we ran a screen you may be interested in.

We screened for technically oversold stocks, with RSI(14) below 40. We then screened these undervalued names for those with high profitability, with higher gross, operating, and pretax margins than their industry peers.

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

1. Bridgepoint Education, Inc. (NYSE:BPI): Provides postsecondary education services. Market cap at $480.51M, most recent closing price at $8.77. RSI (14) at 34.37. TTM gross margin at 73.02% vs. industry average at 50.46%. TTM operating margin at 22.83% vs. industry average at 17.45%. TTM pretax margin at 22.06% vs. industry average at 13.4%.

2. Brookline Bancorp, Inc. (NASDAQ:BRKL): Operates as the holding company for Brookline Bank that provides various banking products and services. Market cap at $551.53M, most recent closing price at $7.81. RSI (14) at 34.20. TTM gross margin at 76.91% vs. industry average at 65.19%. TTM operating margin at 71.37% vs. industry average at 38.%. TTM pretax margin at 25.4% vs. industry average at 17.64%.

3. Cleco Corporation (NYSE:CNL): Engages in the generation, transmission, distribution, and sale of electricity in Louisiana. Market cap at $2.4B, most recent closing price at $39.63. RSI (14) at 37.. TTM gross margin at 41.06% vs. industry average at 29.1%. TTM operating margin at 28.14% vs. industry average at 18.94%. TTM pretax margin at 25.49% vs. industry average at 13.%.

4. CVB Financial Corp. (NASDAQ:CVBF): Operates as a bank holding company for Citizens Business Bank that provides various retail banking and financial services to small to mid-sized businesses, high net-worth individuals, and professionals in the United States. Market cap at $1.03B, most recent closing price at $9.99. RSI (14) at 32.28. TTM gross margin at 89.85% vs. industry average at 72.85%. TTM operating margin at 58.05% vs. industry average at 46.7%. TTM pretax margin at 39.62% vs. industry average at 23.06%.

5. Dun & Bradstreet Corp. (NYSE:DNB): Provides commercial information and insight on businesses worldwide. Market cap at $3.37B, most recent closing price at $74.73. RSI (14) at 33.82. TTM gross margin at 67.86% vs. industry average at 48.12%. TTM operating margin at 27.83% vs. industry average at 17.08%. TTM pretax margin at 22.01% vs. industry average at 14.55%.

*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.

Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.

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