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Oversold Stocks Rated Buy or Better $EQT $EXC $NFG $NRG $RRD $SWN $UPL

SAC CAPITAL ADVISORSInvesting 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.

EQT Corp. (EQT) is a gas utilities company with a $7.29 billion market cap. The company is currently priced at 19.29 times its forward earnings and has an RSI of 24.66. Analysts give EQT a 1.9 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $48.62 a share. EQT has a one-year target estimate of $69.97 a share. Steve Cohen’s Sac Capital Advisors is a fan of EQT.

Exelon Corp. (EXC) is a diversified utilities company with a $26.35 billion market cap. The company is currently priced at 13.16 times its forward earnings and has an RSI of 26.08. Analysts give EXC a 2.5 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $39.55 a share. EXC has a one-year target estimate of $44.65 a share. Jim Simons’ Renaissance Technologies likes EXC.

National Fuel Gas Co. (NFG) is a gas utilities company with a $4.09 billion market cap. The company is currently priced at 14.22 times its forward earnings and has an RSI of 28.83. Analysts give NFG a 2.3 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $49.03 a share. NFG has a one-year target estimate of $70.00 a share. Israel Englander’s Millennium Management has a strong position in NFG.

NRG Energy, Inc. (NRG) is an electric utilities company with a $4.07 billion market cap. The company is currently priced at 18.82 times its forward earnings and has an RSI of 29.00. Analysts give NRG a 2.0 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $17.24 a share. NRG has a one-year target estimate of $24.19 a share. NRG is a top pick for John Griffin’s Blue Ridge Capital.

R.R. Donnelley & Sons Co. (RRD) is a business services company with a $2.71 billion market cap. The company is currently priced at 7.51 times its forward earnings and has an RSI of 25.14. Analysts give RRD a 2.2 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $12.13 a share. RRD has a one-year target estimate of $21.50 a share. Ron Gutfleisch’s Elm Ridge Capital likes RRD.

Southwestern Energy Co. (SWN) is an independent oil and gas company with a $10.25 billion market cap. The company is currently priced at 15.65 times its forward earnings and has an RSI of 22.68. Analysts give SWN a 2.5 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $29.15 a share. SWN has a one-year target estimate of $41.98 a share. Robert Pitts’ Steadfast Capital Management is a fan of SWN.

Ultra Petroleum Corp. (UPL) is an independent oil and gas company with a $3.91 billion market cap. The company is currently priced at 11.26 times its forward earnings and has an RSI of 21.63. Analysts give UPL a 2.5 on a scale in which 1.0 means “Strong Buy” and 5.0 means “Sell.” It recently traded at $24.94 a share. UPL has a one-year target estimate of $44.23 a share. UPL is a top pick for Phill Gross and Robert Atchinson’s Adage Capital Management.

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