Three Oversold Stocks To Consider Buying: Apple Inc. (AAPL), Time Warner Cable Inc (TWC), and More

Page 1 of 2

Several important reports were unveiled last week. The stocks are in a good shape with an optimistic jobs market report, which led to advances in all industry groups of the S&P 500, along with the Dow Jones Industrial Average. Despite the record financial and capital account deficit by China, I think U.S. stocks are getting on track now.

Amidst this optimistic atmosphere, a number of stocks made it to new lows recently. A stock is generally considered oversold when the RTI (relative strength index) hits somewhere around 30. However, one should not confuse them with dirt-cheap ones. I rather call them as out-of-favor stocks under short-term selling pressure. Investors tend to panic when their stocks show a negative sign in a short amount of time, just like we saw with two stocks recently, both of which are included in my article. These stocks might be great candidates for contrarian investors. Based on the RSI tool, I found three stocks that are being mercilessly dumped by investors. Let’s find out why they are in oversold territory, and whether or not they can still be profitable after experiencing such losses recently.

Apple Inc. (NASDAQ:AAPL)Like I said in the previous paragraph, investors panic so easily when they see a negative sign, which drags the stock down to unexplainable levels. Just like we saw with Apple Inc. (NASDAQ:AAPL), giant stocks can lose nearly half of their value in just a couple months. Apple Inc. (NASDAQ:AAPL) is hardly standing a little above $450 these days.

With the pessimistic cloud fading away, Apple Inc. (NASDAQ:AAPL) can leapfrog again in no time. Despite massive efforts and dozens of smartphones made by Samsung, Apple still manages to be the largest mobile phone seller in the United States with a single mobile phone in its arsenal. Yes, Apple does face growing competition in all of the markets it’s active in, but new products like the iPad Mini and a bigger iPhone enlarges its customer portfolio. Besides, a company with a passion for innovation can never fail because it will always find a way to adjust to current dynamics of the market. Major mobile phone producers no longer compete with each other–their goal is to catch up with the iPhone. Even most of their applications come copied from the App Store.

Since Apple has been the “leader of innovation” in the smartphone, tablet, and ultrabook arenas, I believe these declines are nothing but temporary movements. Tom DeMark, the Market Studies CEO, said Friday on CNBC that Apple Inc. (NASDAQ:AAPL)’s current decline is a clear “indicator of a turnaround.” Financial indicators of the stock are in a great shape, as revenue and assets are bouncing quarter by quarter. So in every condition, Apple Inc. (NASDAQ:AAPL) is a buy both fundamentally and technically.

I know most of you will boil over to see Time Warner Cable Inc (NYSE:TWC) on this list as the legendary CEO Glenn Britt is stepping down, which led to a 10% decline in just two days. Okay, the CEO is going–so what? No one is irreplaceable. Time Warner lost one tenth of its value in two days because most of the shareholders panicked. However, the stock is going for a 16% dividend hike. Now where are the chaotic problems at Time Warner related to the CEO stepping down ? No management can offer such a dividend boost if they believed they were on the eve of a catastrophic era.  Never forget that a dividend increase is always a healthy sign.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!