Diamonds in the Rough
Cross-referencing fundamental value against technical exhaustion to isolate beaten-down XLI 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.
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.
Diamond Candidates
Ranked by a composite of earnings yield, ROIC, oversold RSI, recent weakness, and improving money flow.
| # | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 1 | PNR | Pentair plc | 72.2 | 8.20% | 0.72 | 25 | -14.85% | 13 | safe |
| 2 | LII | Lennox International Inc. | 71.3 | 7.38% | 0.63 | 28 | -14.14% | 37 | safe |
| 3 | AOS | A.O. Smith Corporation | 67.1 | 8.56% | 0.63 | 38 | -8.85% | 33 | safe |
| 4 | MAS | Masco Corporation | 64.9 | 7.91% | 0.53 | 41 | -8.38% | 49 | safe |
| 5 | SNA | Snap-on Incorporated | 64.7 | 6.72% | 0.34 | 34 | -7.78% | 23 | safe |
| 6 | TT | Trane Technologies plc | 64.4 | 3.90% | 1.29 | 32 | -11.44% | 49 | safe |
| 7 | MMM | 3M Company | 62.4 | 5.41% | 0.53 | 29 | -12.03% | 28 | safe |
| 8 | TXT | Textron, Inc. | 62.4 | 7.19% | 0.20 | 40 | -8.68% | 49 | safe |
| 9 | GD | General Dynamics Corporation | 61.9 | 5.69% | 0.36 | 33 | -9.90% | 21 | safe |
| 10 | ITW | Illinois Tool Works Inc. | 61.9 | 4.95% | 1.28 | 39 | -8.74% | 33 | safe |
| 11 | HON | Honeywell International, Inc. | 61.0 | 5.31% | 0.44 | 26 | -14.49% | 41 | safe |
| 12 | LMT | Lockheed Martin Corp. | 60.4 | 5.61% | 0.71 | 40 | -13.19% | 28 | safe |
| 13 | DAL | Delta Air Lines, Inc. | 59.7 | 9.14% | 0.27 | 43 | -12.74% | 42 | distress |
| 14 | TDG | TransDigm Group Incorporated | 59.5 | 4.52% | 0.70 | 30 | -10.53% | 22 | safe |
| 15 | UAL | United Airlines Holdings, Inc. Common Stock | 59.5 | 9.38% | 0.12 | 42 | -14.88% | 47 | distress |
Short-Squeeze Watch
Constituents with the highest composite squeeze score — heavy short interest meeting price support.
| # | |||||||
|---|---|---|---|---|---|---|---|
| 1 | PAYX | Paychex Inc | 57.3 | 6.40% | 9.66 | -2.49% | high |
| 2 | SNA | Snap-on Incorporated | 54.0 | 6.75% | 12.40 | -7.78% | high |
| 3 | ITW | Illinois Tool Works Inc. | 53.5 | 3.64% | 9.46 | -8.74% | high |
| 4 | AOS | A.O. Smith Corporation | 51.6 | 9.57% | 8.00 | -8.85% | high |
| 5 | UNP | Union Pacific Corp. | 49.9 | 4.68% | 10.75 | -3.43% | elevated |
| 6 | EFX | Equifax, Incorporated | 48.5 | 6.48% | 7.27 | -4.93% | elevated |
| 7 | LUV | Southwest Airlines Co. | 45.4 | 5.81% | 6.41 | -13.79% | elevated |
| 8 | FTV | Fortive Corporation | 44.5 | 4.87% | 7.24 | -10.83% | elevated |
| 9 | CTAS | Cintas Corp | 44.3 | 3.42% | 6.66 | -1.86% | elevated |
| 10 | FERG | Ferguson Enterprises Inc. | 43.5 | 4.51% | 4.14 | -9.69% | elevated |
| 11 | HUBB | Hubbell Incorporated | 43.3 | 5.75% | 6.53 | -13.58% | elevated |
| 12 | ODFL | Old Dominion Freight Line | 42.5 | 4.14% | 6.11 | -15.17% | elevated |
Market cap, valuation, and short-interest metrics are joined to the latest XLI holdings snapshot; each ticker links to its full quote and analysis page.