Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

CASH And CCRN: Can These Ugly And Ducklings Transform Themselves Into Swans?

|Includes: Meta Financial Group, Inc. (CASH), CCRN

Turnaround stories are stuff of legends, but these legends are brought to life almost every quarter in the stock market. Oversold stocks are able to jostle back on investors' radars while several prominent stocks lose traction. Investors have turned shy in Meta Financial Group Inc. (NASDAQ: CASH) and Cross Country Healthcare Inc. (NASDAQ: CCRN) after these companies failed to meet street expectations in recent quarters. However, there is more to these companies than just the misses in recent quarters.

Meta Financial Group has lost over 13 percent over the last month and its 14 day RSI value of 42 indicates the stock is oversold. Most of these cuts took place after the company reported quarterly results which missed earnings estimates. Meta Financial Group is a holding company for MetaBank which has most of its operations in Northwest and Central Iowa. Suddenly, it appears as if investors are in a hurry to offload shares of this South Dakota based company. However, a look at its fundamentals reveal there is hardly anything to dislike about the company.

Although the company missed expectations, its 27 percent jump in earnings is impressive. The stock offers positive dividend yield, although small, and trades at a price earnings multiple of just 14.7. If this is not enough, its forward valuation of 10.7 and a clean balance sheet are strong reasons to like the stock. Following its latest quarterly results, analysts at Raymond James (NYSE: RJF) increased their price target on the stock from $45 to $46, maintaining a 'strong buy' rating.

Cross Country Healthcare also falls in the unwanted category as the shares have lost in excess of 20 percent over the last month or so. In fact, the stock is just 29 percent above its 52-week low of $4.8. This Florida based company offers staffing and outsourcing services to the healthcare market and continues to witness growing top line.

Cross Country Healthcare faced pressure on bottom line first during the fourth quarter of last year and then again during the first quarter ended March 2014, which led to the stock's lowered rating. However, the company has shared an encouraging outlook for the second quarter, which includes improvement in its gross profit margin to 26.5 percent and in its adjusted EBITDA margin to at least 2 percent. The company has a debt equity ratio of just 0.1 and the current stock price trending dangerously close to its book value is an added advantage. With a bit of support, it may not take long for this oversold stock to stage a recovery.