Benzinga - by Lisa Levin, Benzinga Editor.
The most oversold stocks in the materials 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.
PureCycle Technologies, Inc. (NASDAQ: PCT)
- PureCycle Technologies posted a wider-than-expected second-quarter loss. Dustin Olson, PureCycle's Chief Executive Officer, said, "After successfully producing polypropylene resin pellets from post-industrial feedstock at our flagship purification facility in Ironton, Ohio ("Ironton"), we initiated a series of activities to evaluate, adjust, and in some cases, replace or repair certain equipment in the purification process subsystems. We recently initiated a re-start of Ironton, and the facility is operational. After achieving the first two bondholder milestones in the second quarter, we expect to achieve our next milestone of operating at 50% capacity for a month by the end of September.” The company’s stock has a 52-week low of $4.44 .
- RSI Value: 28.68
- PCT Price Action: Shares of PureCycle Technologies fell 3.6% to close at $5.96 on Monday.
- Albemarle received $90 million critical materials award from the U.S. Department of Defense to boost U.S. lithium production. It has a 52-week low of $164.23.
- RSI Value: 24.69
- ALB Price Action: Shares of Albemarle fell 0.8% to close at $166.89 on Monday.
- FMC reported weaker-than-expected second-quarter financial results. "FMC delivered second quarter results in-line with recently adjusted guidance expectations. Active inventory management by growers and the distribution channel drove unprecedented volume declines and as a result we now expect the overall crop protection market to contract high-single-digits to low-double-digits percent this year despite steady on-the-ground usage by growers," said Mark Douglas, FMC president and chief executive officer. The company’s stock has a 52-week low of $67.37.
- RSI Value: 16.10
- FMC Price Action: Shares of FMC fell 0.7% to close at $67.93 on Monday.
- Louisiana-Pacific reported worse-than-expected second-quarter financial results. "LP earned $93 million in EBITDA in the quarter while operating with exceptional safety and efficiency," said Brad Southern, Chair & Chief Executive Officer. "As the housing outlook continues to improve, I am confident that LP's strategy positions us well for long-term growth." The company’s 52-week low is $48.39.
- RSI Value: 28.04
- LPX Price Action: Shares of Louisiana-Pacific fell 0.2% to close at $55.56 on Monday.
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