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

1. BOK Financial Corp. (NASDAQ:BOKF): Offers a range of financial products and services to commercial and industrial customers, and other financial institutions and consumers. RSI(14) at 34.98. TTM gross margin at 91.76% vs. industry average at 71.34%. TTM operating margin at 53.36% vs. industry average at 40.6%. TTM pretax margin at 32.39% vs. industry average at 22.01%.

2. CARBO Ceramics Inc. (NYSE:CRR): Manufactures and supplies ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. RSI(14) at 29.36. TTM gross margin at 47.58% vs. industry average at 35.48%. TTM operating margin at 31.83% vs. industry average at 18.22%. TTM pretax margin at 31.56% vs. industry average at 16.09%.

3. Estee Lauder Companies Inc. (NYSE:EL): Engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. RSI(14) at 39.91. TTM gross margin at 82.13% vs. industry average at 71.34%. TTM operating margin at 14.73% vs. industry average at 13.49%. TTM pretax margin at 13.2% vs. industry average at 11.19%.

4. Exelon Corp. (NYSE:EXC): Operates as a utility services holding company in the United States. RSI(14) at 32.88. TTM gross margin at 30.99% vs. industry average at 26.78%. TTM operating margin at 23.93% vs. industry average at 18.4%. TTM pretax margin at 20.88% vs. industry average at 14.%.

5. International Game Technology (NYSE:IGT): Designs, manufactures, and markets electronic gaming equipment and systems worldwide. RSI(14) at 38. TTM gross margin at 65.89% vs. industry average at 35.58%. TTM operating margin at 26.14% vs. industry average at 18.78%. TTM pretax margin at 20.75% vs. industry average at 17.93%.

6. Norfolk Southern Corp. (NYSE:NSC): Engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. RSI(14) at 36.11. TTM gross margin at 36.99% vs. industry average at 36.01%. TTM operating margin at 29.28% vs. industry average at 26.5%. TTM pretax margin at 26.12% vs. industry average at 23.14%.

7. RPC Inc. (NYSE:RES): Provides a range of oilfield services and equipment to the oil and gas companies primarily in the United States. RSI(14) at 29.46. TTM gross margin at 45.15% vs. industry average at 35.33%. TTM operating margin at 26.85% vs. industry average at 18.36%. TTM pretax margin at 26.46% vs. industry average at 16.28%.

8. True Religion Apparel Inc. (NASDAQ:TRLG): Designs, develops, manufactures, markets, distributes, and sells apparel in North America, Europe, Asia, Australia, Africa, and South America. RSI(14) at 25.33. TTM gross margin at 64.75% vs. industry average at 53.92%. TTM operating margin at 18.59% vs. industry average at 16.43%. TTM pretax margin at 17.62% vs. industry average at 15.33%.

*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.