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.
United Homes Group, Inc. (NASDAQ: UHG)
- United Homes posted second-quarter earnings of $4.27 per share on sales of $122.09 million. "United Homes Group produced solid results in the second quarter of 2023, generating adjusted EBITDA of approximately $13.1 million," said Michael Nieri, Chief Executive Officer of United Homes Group. The company’s stock has a 52-week low of $8.07 .
- RSI Value: 29.39
- UHG Price Action: Shares of United Homes Group fell 3.5% to close at $8.55 on Friday.
- Interactive Strength reported a distribution partnership with The Risher Companies. It has a 52-week low of $1.41.
- RSI Value: 28.96
- TRNR Price Action: Shares of Interactive Strength fell 2% to close at $1.44 on Friday.
- REE Automotive posted a wider-than-expected quarterly loss. The company’s stock has a 52-week low of $0.25.
- RSI Value: 21.62
- REE Price Action: Shares of REE Automotive closed at $0.2550 on Friday.
- Funko reported a second-quarter earnings miss and issued weak guidance. "For the 2023 second quarter, net sales and adjusted EBITDA loss were within our guidance, and SG&A expenses were better than expected and an improvement over the preceding quarter," said Michael Lunsford, recently appointed Interim Chief Executive Officer of Funko. The company’s 52-week low is $6.01.
- RSI Value: 25.70
- FNKO Price Action: Shares of Funko fell 1.6% to close at $6.07 on Friday.
- Petco Health and Wellness Company delivered first-quarter sales of $1.56 billion, up 5.4% Y/Y, slightly ahead of the consensus of $1.51 billion. "We continue to execute on our strategy amidst the current environment, delivering our 18th consecutive quarter of comp sales growth in the first quarter, driven by the ongoing strength in consumables and record performance in our services business," said Petco CEO Ron Coughlin. The company has a 52-week low of $7.12.
- RSI Value: 28.79
- WOOF Price Action: Shares of Petco Health and Wellness fell 0.4% to close at $7.17 on Friday.
Read More: Investor Sentiment Declines After July's Producer Price Index
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.