These two dozen large-caps are oversold

Last week, we screened the market for high-quality AIM-listed companies that looked to have been unfairly hammered in the recent sell-off. We identified some of those which should rebound sharply when normal business resumes. Now, the analysts at Barclays have picked two-dozen big-hitters that look cheap.

The broker has screened for companies where "there may be a good opportunity" in the aftermath of the latest selling panic. "We highlight stocks that have declined since 19 September, which was when the selloff in the market started, but have seen upgrades to their earnings estimates over that time period," it writes.

"Of the subset of these companies, we highlight those rated Overweight by our research analysts." (see below)

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On 17 October, Interactive Investor research revealed a number of AIM companies that had fallen by more than 10% since 19 September. We also targeted any expected to grow earnings per share (EPS) significantly over the next two years, and favoured those trading on modest price/earnings multiples.

Among those who stood out were: Character Group, The Mission marketing Group, Telit Communications and Fairpoint. All have easily outperformed a rising market since our article went out on 17 October.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.