Opportunity Scan

Diamonds in the Rough

Cross-referencing fundamental value against technical exhaustion to isolate beaten-down XHB constituents that screen cheap and oversold. The bottom-right quadrant — high earnings yield, low RSI — is the prime hunting ground, especially where money flow (MFI) shows quiet accumulation despite the falling price.

16 in diamond zone33 scored

Educational screen, not investment advice. “Diamond” classification is a mechanical valuation-vs-RSI split around the cohort median earnings yield and an RSI of 50.

Alpha Quadrant — Valuation × Technical Exhaustion

X = earnings yield (cheaper right) · Y = RSI 14 (more oversold lower) · bubble = market cap · color = money flow.

Accumulation (MFI ≥ 55)Neutral flowDistribution (MFI ≤ 45)Diamond-zone ring

◆ Diamond in the RoughCheap + oversold. Deep value in a technically exhausted state — the prime target.

Fairly Valued WinnerCheap + extended. Strong action backed by earnings, but late for new entries.

Value TrapExpensive + beaten down. Falling yet still richly valued — structurally suspect.

Momentum DarlingExpensive + extended. Crowded leaders with mean-reversion risk.

Diamond Candidates

Ranked by a composite of earnings yield, ROIC, oversold RSI, recent weakness, and improving money flow.

#
1	LII	Lennox International Inc.	71.3	7.38%	0.63	28	-14.14%	37	safe
2	LOW	Lowe's Companies Inc.	67.9	7.01%	0.51	36	-9.22%	34	safe
3	HD	Home Depot, Inc.	66.1	5.86%	0.68	35	-10.41%	24	safe
4	IBP	INSTALLED BUILDING PRODUCTS, INC.	66.0	6.33%	0.44	29	-18.53%	20	safe
5	TOL	Toll Brothers, Inc.	65.8	12.17%	0.18	36	-11.14%	27	safe
6	MAS	Masco Corporation	64.9	7.91%	0.53	41	-8.38%	49	safe
7	KBH	KB Home	64.6	10.98%	0.15	37	-12.44%	44	safe
8	TT	Trane Technologies plc	64.4	3.90%	1.29	32	-11.44%	49	safe
9	CSL	Carlisle Companies, Inc.	64.0	6.45%	0.45	38	-15.03%	25	safe
10	PHM	Pultegroup, Inc.	63.3	10.95%	0.24	38	-9.34%	30	safe
11	WMS	ADVANCED DRAINAGE SYSTEMS, INC.	62.9	6.02%	0.28	32	-11.61%	43	safe
12	MHO	M/I Homes, Inc.	62.4	11.93%	0.12	38	-9.20%	41	safe
13	MTH	Meritage Homes Corporation	62.3	8.59%	0.07	38	-12.27%	36	safe
14	DFH	Dream Finders Homes, Inc.	61.3	9.72%	0.17	40	-13.19%	44	safe
15	DHI	D.R. Horton Inc.	60.4	8.99%	0.72	43	-5.84%	43	safe

Short-Squeeze Watch

Constituents with the highest composite squeeze score — heavy short interest meeting price support.

#
1	DFH	Dream Finders Homes, Inc.	72.6	22.34%	14.19	-13.19%	high
2	LGIH	LGI Homes, Inc.	66.2	15.40%	14.44	-11.93%	high
3	KBH	KB Home	59.2	12.94%	9.04	-12.44%	high
4	MHO	M/I Homes, Inc.	54.0	7.52%	8.12	-9.20%	high
5	CCS	CENTURY COMMUNITIES, INC.	53.7	7.58%	8.63	-15.11%	high
6	MTH	Meritage Homes Corporation	51.2	6.96%	8.29	-12.27%	high
7	IBP	INSTALLED BUILDING PRODUCTS, INC.	50.8	8.19%	7.22	-18.53%	high
8	GRBK	Green Brick Partners, Inc	50.6	7.14%	6.20	-3.08%	high
9	LEN	Lennar Corporation Class A	49.5	8.84%	7.40	-7.80%	elevated
10	PHM	Pultegroup, Inc.	43.6	4.55%	6.75	-9.34%	elevated
11	AAON	Aaon Inc	43.3	6.99%	4.39	-11.49%	elevated
12	DHI	D.R. Horton Inc.	41.4	4.04%	5.68	-5.84%	elevated

Market cap, valuation, and short-interest metrics are joined to the latest XHB holdings snapshot; each ticker links to its full quote and analysis page.