Looking for Stocks

By Douglas A. McIntyre Updated Apr 28, 12:46AM EDT · Published Mar 13, 1:19PM EDT

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From Ticker Sense

One way we look for compelling stocks is to start out by finding the sector that is the most oversold. After that we find which stocks in that sector are the most oversold and see which of those have the best money flows. This gives us a good starting point in identifying possible investment opportunities.

Currently the Consumer Staples sector is trading further below its 50-day moving average than it has since the start of 2006.

Staples

Below we highlight the 8 stocks in the Consumer Staples sector that are trading the furthest below their respective 50-day moving averages. We also include each stock’s money flow line so we can quickly identify possible buying opportunities. As shown, the only stock of the 8 whose money flows are strong and where positive divergence between money flows and stock price has taken place is Clorox (CLX).

Remember, this is the beginning of the research process and not the end. Everyone should have more processes and strategies to filter through before making a final investment decision.

(blue line = 50-day spread and dark red line = money flows)

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.