Thoughts and Observations on Turkish Economy and financial markets. Turkiye Ekonomisi, Borsa, Dolar, Altin, Faiz, Teknik Analiz, Grafik, Hisse Senetleri...

Wednesday, October 02, 2013

Oversold Stocks Rated Buy or Better

There are stocks that are considered oversold and they are rated Buy or Better.  Insider Monkey has a posting about "Oversold Stocks Rated Buy or Better".

Investing can take two paths. On the one hand, a stock can be a position an investor takes in the hope that the stock price itself will improve, netting him or her a handy return. On the other hand, investors may choose a stock based on momentum. Specifically, a stock that has been oversold will be artificially lower in price. Once the market corrects itself, be it hours or months later, the stock can be sold for a tidy profit even at normal market conditions. Investors can tell whether a stock is oversold (or overbought) by looking at its Relative Strength Index (RSI). RSI ranges from 1 to 100. The nearer to 1 a company’s RSI, the more likely the stock is oversold whereas if the closer to 100 the RSI the stock is more overbought.The companies on this list are examples of overbought stocks – they have RSIs under 30 – but they still carry analyst recommendations of buy or better and are priced at less than 20 times their forward earnings. You may go yo Insider Monkey's website for more info on oversold stocks.