Benzinga - by Lisa Levin, Benzinga Editor.
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.
Torrid Holdings Inc. (NYSE: CURV)
- Torrid Holdings reported weaker-than-expected second-quarter earnings. Lisa Harper, Chief Executive Officer, stated, “Our second quarter results were in line with our guidance, reflecting our commitment to disciplined expense and inventory management even amidst a challenging market. We maintain that fiscal 2023 is a pivotal 'rebuild year' for us.” The company’s stock has a 52-week low of $1.21 .
- RSI Value: 27.57
- CURV Price Action: Shares of Torrid Holdings jumped 15.5% to close at $1.42 on Thursday.
- Farfetch reported mixed second-quarter financial results and issued FY23 revenue guidance below estimates.. It has a 52-week low of $2.29.
- RSI Value: 26.34
- FTCH Price Action: Shares of Farfetch gained 3.9% to close at $2.42 on Thursday.
- SRM Entertainment reported pricing of IPO of 1.25 million shares at $5.00 per share. The company’s stock has a 52-week low of $1.47.
- RSI Value: 20.26
- SRM Price Action: Shares of SRM Entertainment jumped 9.9% to close at $1.67 on Thursday.
- PLBY Group posted a narrower-than-expected quarterly loss. Ben Kohn, Chief Executive Officer of PLBY Group said, “During the second quarter, we continued to make significant progress transitioning the business to a capital-light model and made substantial improvements to our creator platform.” The company’s 52-week low is $1.04.
- RSI Value: 28.78
- PLBY Price Action: Shares of PLBY Group rose 1% to close at $1.05 on Thursday.
- United Homes posted a second-quarter EPS of $4.27 on sales of $122.09 million. The company has a 52-week low of $5.91.
- RSI Value: 22.69
- UHG Price Action: Shares of United Homes Group rose 3.3% to close at $6.11 on Thursday.
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