Benzinga - by Lisa Levin, Benzinga Editor.
The most oversold stocks in the communication services 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.
IAC Inc. (NASDAQ: IAC)
- IAC shares reported worse-than-expected second-quarter financial results. The company’s stock has a 52-week low of $41.52 .
- RSI Value: 28.46
- IAC Price Action: Shares of IAC fell 3.1% to close at $42.01 on Thursday.
- Ooma posted better-than-expected sales for its second quarter. "Ooma performed well in Q2 with 14% year-over-year subscription and services revenue growth, driven by 27% year-over-year growth in business services revenue," said Eric Stang, chief executive officer of Ooma. It has a 52-week low of $10.92.
- RSI Value: 27.65
- OOMA Price Action: Shares of Ooma gained 0.5% to close at $11.28 on Thursday.
- UBS analyst Kunal Madhukar recently initiated coverage on ZipRecruiter with a Neutral rating and announced a price target of $13. The company’s stock has a 52-week low of $10.27.
- RSI Value: 27.79
- ZIP Price Action: Shares of ZipRecruiter gained 0.3% to close at $10.45 on Thursday.
- Iridium Communications reported worse-than-expected third-quarter financial results. "Iridium continues to enjoy strong subscriber momentum and broad-based revenue growth across its commercial business lines, which drove record operational EBITDA," said Matt Desch, CEO, Iridium. The company’s 52-week low is $36.70.
- RSI Value: 23.09
- IRDM Price Action: Shares of Iridium Communications fell 0.4% to close at $36.80 on Thursday.
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