The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
1-800-FLOWERS.COM, Inc. FLWS
- 1-800-FLOWERS.COM acquired the gifting platform SmartGift Inc. The financial terms of the transaction were not disclosed.
- The company’s stock has a 52-week low of $5.82 .
- RSI Value: 29.18
- FLWS Price Action: Shares of 1-800-FLOWERS.COM fell 7.6% to close at $7.51 on Thursday.
Stitch Fix, Inc. SFIX
- Stitch Fix reported worse-than-expected Q2 results and issued Q3 guidance with a midpoint below estimates. Stitch Fix Interim CEO Katrina Lake said, “This quarter, we continued to execute on our plan to achieve profitability and preserve liquidity, delivering adjusted EBITDA of $3.8 million, which is at the high end of our guidance range.” The company’s stock has a 52-week low of $2.63.
- RSI Value: 29.24
- SFIX Price Action: Shares of Stitch Fix fell 5.5% to close at $2.95 on Thursday.
Sonic Automotive, Inc. SAH
- Sonic Automotive reported worse-than-expected Q1 EPS and sales results. The company’s stock has a 52-week low of $16.14.
- RSI Value: 26.78
- SAH Price Action: Shares of Sonic Automotive fell 4.2% to close at $39.98 on Thursday.
2U, Inc. TWOU
- 2U reported mixed Q1 financial results. “We’re thrilled to report that we achieved positive adjusted free cash flow for the first time in our history, delivering a 146% increase in adjusted EBITDA. We generated three million new learner prospects and our enterprise channel grew 57%,” said Christopher “Chip” Paucek, Co-Founder and CEO of 2U. The company’s 52-week low is $3.37.
- RSI Value: 28.21
- TWOU Price Action: Shares of 2U fell 3.9% to close at $3.56 on Thursday.
GoPro, Inc. GPRO
- GoPro is expected to release its financial results for the first quarter ended March 31, 2023, after the market closes on May 9, 2023. The company has a 52-week low of $4.03.
- RSI Value: 27.93
- GPRO Price Action: Shares of GoPro rose 0.2% to close at $4.16 on Thursday.
Read More: Fear & Greed Index Moves To ‘Neutral’ Zone After US Stocks Drop For Fourth Day
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.