The best part of the stock market is that it’s sometimes quite inefficient. If you can identify the errors, you’ll be able to create opportunities for high returns. Oversold stocks are often caused because of emotion and over-excitement of traders. In fact, emotion is what causes many inefficiencies in the stock market. When investors are making decisions based on emotion instead of knowledge they create opportunities for other traders.
Recently, a number of stocks entered into oversold territory. An oversold stock is defined by Investopedia as, “A condition in which the price of an underlying asset has fallen sharply, and to a level below which its true value resides. This condition is usually a result of market overreaction or panic selling.” Here is a list of 10 recently oversold stocks that as an investor, you need to know about:
1. NTELOS Holdings Corp (NASDAQ:NTLS)
During a recently trading NTELOS Holdings Corp (NTLS) shares moved into oversold status, reaching a relative strength index (RSI) reading of 29.7, after shares sold for as little as $5.73. NTLS’s lowest point within a 52-week range was $3.85 per share and its highest was at $13.61.
2. DTS Inc (NASDAQ:DTSI)
DTS Inc (DTSI) joined NTELOS as an oversold stock during a recent trading. Its RSI reached 28.1 after shares sold for as little as $29.33. Within a 52 week range, DTSI’s lowest point was $17.43 per share, with its highest point reaching $38.24.
3. CorMedix Inc (AMEX:CRMD)
CorMedix Inc (CRMD) hit an RSI reading of 28.4 recently, entering the oversold category. Its stocks sold for as little as $5.28. During its 52 week range, it reached a low point of $1.25 per share and up to $10.40 during its highest point.
4. Exterran Partners LP (NASDAQ:EXLP)
Exterran Partners LP (EXLP) reached an oversold status in a recent trading, selling for as little as $24.08 per share and reading an RSI reading of 29.0. EXLP’s lowest point per share reached $19.01 while its high point was up to $30.64.
5. PICO Holdings Inc. (NASDAQ:PICO)
PICO Holdings Inc. (PICO) entered into the list of oversold stocks when its RSI hit 29.9, after selling for as little as $15.19 per share. PICO’s lowest point within a 52-week range hit $14.97 and its highest was $24.45.
6. Caesars Entertainment Corp (NASDAQ:CZR)
A recent trading resulted in Caesars Entertainment Corp (CZR) entering into the oversold category with an RSI of 29.9, after selling for as little as $6.79 per share. CZR’s low point during its 52-week range was $5.95 while its highest was $18.84.
7. Fuel Systems Solutions Inc (NASDAQ:FSYS)
Fuel Systems Solutions Inc (FSYS) entered the oversold category recently, when its RSI reading was at 29.99, after selling shares for as little as $7.96 each. During the 52 week range, RSI’s lowest point was $7.86 and its highest reached $11.88.
8. Asterias Biotherapeutics Inc (AMEX:AST)
Asterias Biotherapeutics Inc (AST) moved into the oversold territory when its RSI reading hit $28.9. It sold for as little as $8.50 per share. Within a range of 52 weeks, AST reached a low point of $2.04 per share and a high of $15.10.
9. Connecture Inc (NASDAQ:CNXR)
Connecture Inc (CNXR) joined the list of oversold stocks with its RSI reading reaching 29.0 after being sold for a mere $8.50. During a 52 week range, RSI has a low point of $8.04 per share while its high point went as high as $14.39.
10. Blount International, Inc. (NYSE:BLT)
During a recent trading, Blount International, Inc. (BLT) entered the oversold category, when its RSI reading was at 29.8, after being sold for as little as $11.15 per share. Based on a 52-week range, RSI’s lowest point was as little as $11.15, while its highest point was at $17.97.
A bullish investor would likely look for an opportunity as the entry point on the buy side because the RSI readings of these stocks show that recent heavy selling will soon exhaust itself.