10 top oversold stocks

Screening Filters

1. Market Cap ≥ $5,000,000,000

   • Purpose: Focus on larger, more established U.S. companies.
   • Rationale:
     • The user asked for “top” oversold stocks, which typically implies higher-quality, more followed names rather than tiny, speculative companies.
     • A minimum $5B market cap steers the results toward well-known mid- and large-cap stocks where oversold conditions are more likely to reflect sentiment swings rather than existential business risk.

2. Share Price ≥ $5

   • Purpose: Exclude penny stocks and very low-priced shares.
   • Rationale:
     • Very low-priced stocks can be extremely volatile and easily manipulated, and “oversold” signals are less reliable in that universe.
     • Keeping price above $5 helps ensure the results are more investable and typically listed on major exchanges with stricter standards.

3. Monthly Average Dollar Volume ≥ $1,000,000

   • Purpose: Ensure sufficient liquidity.
   • Rationale:
     • “Top oversold stocks” should be reasonably easy to trade in and out of.
     • A minimum dollar volume filter removes illiquid names where spreads are wide and a trader/investor may struggle to execute meaningful orders without moving the price.

4. RSI Category = Oversold

   • Purpose: Directly identify technically oversold stocks.
   • Rationale:
     • RSI (Relative Strength Index) is a common technical indicator; “oversold” is usually RSI below ~30.
     • Since the user explicitly wants “oversold” stocks, this is the core filter making sure every result is in an oversold condition by a standard technical definition.

5. 1-Month Price Change ≤ -20%

   • Purpose: Capture stocks that have recently sold off hard.
   • Rationale:
     • A decline of 20% or more in a month is a substantial drop, reinforcing the oversold condition beyond just RSI.
     • This ensures the list reflects names that have experienced meaningful recent downside pressure, which aligns with the intuitive idea of “oversold.”

6. Region = United States

   • Purpose: Restrict the universe to U.S. stocks.
   • Rationale:
     • The user specifically asked for the U.S. stock market.
     • This filter removes foreign listings and ADRs outside the U.S. focus.

7. Exchange in [XNYS, XNAS, XASE] (NYSE, NASDAQ, AMEX)

   • Purpose: Limit to major U.S. exchanges.
   • Rationale:
     • Ensures the results come from well-regulated, widely followed venues (NYSE, NASDAQ, NYSE American).
     • This generally improves data quality, liquidity, and investability of the names returned as “top oversold stocks.”

Why Results Match:

• The RSI = oversold plus ≥20% monthly drop directly target stocks that are technically and price-wise “oversold.”
• The U.S. region and major exchanges filters restrict to the U.S. stock market as requested.
• The market cap, price, and liquidity filters refine the universe to larger, more tradable, higher-quality names that are more appropriate candidates for a “top 10 oversold stocks” type list.