These stocks are oversold into what could be good earnings reports, Barclays says

Published Tue, Feb 1 202211:53 AM ESTUpdated Tue, Feb 1 202212:08 PM EST

Jesse Pound @/in/jesse-pound @jesserpound

Another round of corporate earnings growth ultimately couldn't hold off the market's slide in January, but that may create some upside potential for the companies reporting in the weeks ahead. Barclays published a list of stocks on Jan. 30 that appear to be oversold in a key technical indicator ahead of upcoming quarterly reports. The list includes stocks with a relative strength index of 30 or less, which means that names have more negative momentum than the average stock over the past 14 days, as measured by the number and magnitude of down days. "Our stock screen this week highlights a few names that have pulled back sharply during the recent sell-off, but for which our analysts see the potential for positive revisions into the upcoming print as well as significant potential upside for the shares," the note said. For the stocks below, Barclays also has an overweight rating and higher-than-average estimate for earnings per share in 2022, which could help drive stocks as many companies issue full-year guidance. One of the biggest names on the list is streaming audio company Spotify . However, the stock may not be oversold for long, as it surged on Monday after an upgrade from Citi . The list also has a pair of health-care names in Eli Lily and Thermo Fisher Scientific . In January, the stocks tumbled by more than 11% and 12%, respectively, despite health care traditionally being seen as a defensive sector. Another interesting name on the list is homebuilder D.R. Horton . The combination of supply chain issues, rising wages and the Federal Reserve's plan to hike interest rates have some Wall Street analysts warning of a slowdown in the housing market this year. But D.R. Horton fell nearly 18% in January and may be a candidate for a rebound, at least in the near term. Investors looking for a stock with an even more pronounced drawback may want to take a look at Twilio . The software stock was down more than 20% in January and more than 40% over the past year. — CNBC's Michael Bloom contributed to this report.

Traders on the floor of the NYSE, Jan. 24, 2022.

Source: NYSE

Another round of corporate earnings growth ultimately couldn't hold off the market's slide in January, but that may create some upside potential for the companies reporting in the weeks ahead.