4 Oversold BRIC Stocks With High Profitability

Looking into emerging markets? Here we list 4 companies from the BRIC nations (Brazil, Russia, India, and China) that are technically oversold (RSI(14) < 40).

These stocks are also highly profitable, beating their industry averages on trailing twelve month (TTM) gross, operating, and pretax margin.



Do you think these companies are about to bounce back? Use this list as a starting-off point for your own analysis.

List sorted by the difference between company TTM gross margin and industry average.

1. China Hydroelectric Corporation (CHC): Electric Utilities Industry. Market cap of $307.62M. China. RSI(14) at 36.97. Gross margin (TTM) at 62.72% vs. industry avg. of 32.82%. Operating margin (TTM) at 34.17% vs. industry avg. of 19.87%. Pretax margin (TTM) at 11.02% vs. industry avg. of 8.04%. The stock has performed poorly over the last month, losing 11.47%.



2. Petroleo Brasileiro (PBR): Oil & Gas Drilling & Exploration Industry. Market cap of $226.21B. Brazil. RSI(14) at 31.61. Gross margin (TTM) at 37.69% vs. industry avg. of 34.47%. Operating margin (TTM) at 19.69% vs. industry avg. of 16.08%. Pretax margin (TTM) at 21.52% vs. industry avg. of 16.28%. The stock is currently stuck in a downtrend, trading 6.65% below its SMA20, 11.5% below its SMA50, and 5.42% below its SMA200. The stock has performed poorly over the last month, losing 13.05%.



3. NetEase.com, Inc. (NTES): Internet Software & Services Industry. Market cap of $5.97B. China. RSI(14) at 37.29. Gross margin (TTM) at 71.55% vs. industry avg. of 69.34%. Operating margin (TTM) at 46.20% vs. industry avg. of 27.20%. Pretax margin (TTM) at 46.78% vs. industry avg. of 24.65%. The stock has performed poorly over the last month, losing 12.85%.



4. Centrais Electricas Brasileiras S.A. (EBR): Electric Utilities Industry. Market cap of $16.28B. Brazil. RSI(14) at 33.58. Gross margin (TTM) at 27.89% vs. industry avg. of 27.01%. Operating margin (TTM) at 19.80% vs. industry avg. of 19.02%. Pretax margin (TTM) at 16.33% vs. industry avg. of 15.41%. The stock has performed poorly over the last month, losing 11.27%.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.