The market is coming off of one of its biggest weeks of the year, but there are still plenty of good buying opportunities out there. With the exception of a couple of decent days last week, some stocks remain fairly beaten down. Here are four stocks that may already be oversold. (To help you decide if a company is on the way up, check out Qualitative Analysis: What Makes A Company Great?)

TUTORIAL: Financial Ratios

A Tale of Two Tapes
In just the last three months, Intel (Nasdaq:INTC) and Advanced Micro Devices (NYSE:AMD) have seen their stock prices head in very opposite directions. INTC shares have spiked 14.3% while AMD shares have declined by 15.0%.

AMD now sits at a forward P/E of 9.5 and has said that it is seeing strong demand for its Fusion accelerated processing units. In Q1, its non-GAAP revenue inched up slightly on a year-over-year basis. Potential investors should keep in mind that AMD has been fighting a decline in the average selling price for its microprocessors and this trend may have yet to bottom out.

The glassmaker Owens-Illinois (NYSE:OI) recently lowered its Q2 outlook saying that operating profit margins may be 3% to 6% below what they were a year ago. The reaction to this news seems to be a bit overdone as the stock has fallen about 14% in the past month. The stock now rests at a forward P/E of 8.4. (To get a better understanding of what all these numbers mean, read What Are A Stock's "Fundamentals"?)

Nerves of Steel
Steel Dynamics (Nasdaq:STLD) is in a similar situation to Owens-Illinois. The company recently announced that its Q2 EPS would come in below analyst estimates as it has been experiencing tighter margins in its metals recycling business. STLD shares are now over 11% lower than where they began the year and trade at a forward P/E of 7.5.

It does not appear that Steel Dynamics is in all that bad of shape. Its shipments continue to trend upwards and pricing has improved dramatically for the company. The company has reported weakness in the non-residential construction market for steel, but has a diverse portfolio of operating segments. STLD also sports a relatively high dividend yield for a steel company at 2.4%.

One other steel stock that may already be oversold is Reliance Steel (NYSE:RS). The stock has dropped almost 16% during the past three months and carries a forward P/E of 8.5. At this point, it would not take much favorable news in the steel markets to give RS shares a quick bounce, but investors may need to be a little bit patient with either of these steel plays.

The Bottom Line
Even as the market has roared back, they are still a number of stocks worthy of consideration for value oriented investors. Knee-jerk reactions to the slightest bit of negative news can send a stock into a tailspin where it can take some time for investors to realize that the sell-off was unwarranted. These are four stocks that might fall into such a category. (For more help on value investing, see The Value Investor's Handbook.)

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