5 Oversold and Undervalued Large Caps With Low Debt

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Includes: BB, DCMYY, EQNR, HES, NOK
by: Kapitall

Companies carrying high levels of debt are often burdened by high interest payments and the inability to make decisions outside the agreements of their debt covenants. Because debtholders are always paid before stockholder dividends, high company debt is also unattractive to investors considering a stock purchase.

For these reasons, we wanted to search for companies holding little debt. We first screened for technically oversold large-cap stocks (with RSI(14) below 40) that are undervalued relative to MRQ cash flow (with P/CF below 5). Among that universe, we found those with low MRQ debt-to-assets. This produced 5 stocks, listed below.

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.


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

List sorted by market cap.

1. NTT DOCOMO, Inc. (DCM): Wireless Communications Industry. Market cap of $77.13B. RSI(14) at 37.02. Price to cash flow at 4.97. MRQ total debt to total assets at 0.06. The stock has gained 18.04% over the last year.



2. Statoil ASA (STO): Oil & Gas Drilling & Exploration Industry. Market cap of $76.69B. RSI(14) at 36.88. Price to cash flow at 4.48. MRQ total debt to total assets at 0.17. The stock has gained 24.16% over the last year.



3. Hess Corporation (NYSE:HES): Oil & Gas Refining & Marketing Industry. Market cap of $23.64B. RSI(14) at 35.09. Price to cash flow at 4.73. MRQ total debt to total assets at 0.15. The stock has performed poorly over the last month, losing 10.02%.

4. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $22.87B. RSI(14) at 25.85. Price to cash flow at 4.69. MRQ total debt to total assets at 0.13. The stock has performed poorly over the last month, losing 25.95%.

5. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $15.60B. RSI(14) at 24.99. Price to cash flow at 3.71. MRQ total debt to total assets at 0.00. It's been a rough couple of days for the stock, losing 15.74% over the last week.

*Price to cash flow and MRQ debt to assets sourced from Screener.co, 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.