Benzinga - by Avi Kapoor, Benzinga Staff Writer.
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, according to Benzinga Pro.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
Arko Corp. (NASDAQ: ARKO)
- On Feb. 27, ARKO reported worse-than-expected fourth-quarter revenue results and issued FY24 net income guidance. “Reflecting on our first three years as a public company, we have significantly broadened our geographic footprint through acquisitions, and have delivered approximately $166 million in net income and approximately $850 million in cumulative adjusted EBITDA over this period,” said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. The company’s stock fell around 18% over the past five days and has a 52-week low of $6.26 .
- RSI Value: 24.14
- ARKO Price Action: Shares of Arko gained 0.2% to close at $6.51 on Monday.
- On Feb. 20, Choice Hotels Intl posted upbeat quarterly earnings. The company’s stock fell around 9% over the past month. It has a 52-week low of $109.01.
- RSI Value: 29.35
- CHH Price Action: Shares of Choice Hotels International fell 0.2% to close at $109.60 on Monday.
- On Feb. 22, Standard Motor Products reported worse-than-expected fourth-quarter financial results and issued guidance. Mr. Eric Sills, Standard Motor Products' Chairman and Chief Executive Officer stated, "Overall we were disappointed in our results. Sales were down 1% in 2023, with the fourth quarter finishing softer than expected, down 5.7% from last year. As we look at our two end markets, we were very pleased with the continued solid performance in our Engineered Solutions business as we experienced strong growth with both new and existing customers." The company’s stock fell around 23% over the past monthand has a 52-week low of $30.15.
- RSI Value: 22.34
- SMP Price Action: Shares of Standard Motor Products fell 0.2% to close at $31.03 on Monday.
- On Feb. 27, Big 5 Sporting Goods posted a wider-than-expected quarterly loss. The company’s shares lost around 18% over the past five days. The company’s 52-week low is $4.25.
- RSI Value: 29.31
- BGFV Price Action: Shares of Big 5 Sporting Goods dipped 5.7% to close at $4.43 on Monday.
- On Feb. 21, Rivian reported fourth-quarter revenue of $1.32 billion, which beat a Street consensus estimate of $1.26 billion, according to data from Benzinga Pro. "We made great progress in 2023 despite economic headwinds, and we're excited about the year ahead. We firmly believe in the full electrification of the automotive industry but recognize in the short-term, the challenging macro-economic conditions," Rivian CEO RJ Scaringe said. The company’s shares fell around 27% over the past month. The company has a 52-week low of $10.05.
- RSI Value: 28.05
- RIVN Price Action: Shares of Rivian Automotive fell 3.9% to close at $10.91 on Monday.
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