The opportunity to acquire undervalued companies in the communication services sector is akin to finding a diamond in the rough.
One key metric to identify such opportunities is the Relative Strength Index (RSI). When this momentum indicator reveals values near or below 30, it signals a potential oversold condition, presenting a chance for investors to swoop in.
Let’s delve into the top three most oversold tech and telecom stocks that could fly high in July.
Walt Disney Co (DIS)
- Recently, concerns arose regarding the $8.5 billion merger between Disney’s media assets and Reliance Industries, causing Disney’s stock to plummet approximately 11% over the past month, hitting a 52-week low of $78.73.
- RSI Value: 20.76
- DIS Price Action: Disney shares closed at $90.94 after a 3.4% decline on Tuesday.
- Real-time updates from Benzinga Pro shed light on the latest developments impacting Disney’s stock.
IQIYI Inc – ADR (IQ)
- Following a downgrade from HSBC analyst Charlene Liu, IQIYI saw a significant dip of around 15% in its stock price over the past five days, reaching a 52-week low of $3.06.
- RSI Value: 26.29
- IQ Price Action: IQIYI closed at $3.16 with a 6.5% decrease on Tuesday.
- Insights from Benzinga Pro’s charting tool helped investors track the downward trend in IQIYI stock.
Kanzhun Ltd (BZ)
- Kanzhun delivered strong quarterly results, exceeding management’s expectations. Despite this, the company witnessed a dip of approximately 22% in its stock value over the past month, hitting a 52-week low of $12.57.
- RSI Value: 24.19
- BZ Price Action: Kanzhun closed at $15.93, marking a 0.8% decrease on Tuesday.
- Benzinga Pro’s signals feature identified a potential breakout in Kanzhun’s shares.
Could these oversold stocks potentially reverse their fortunes and surge ahead in July? Only time will tell, but for savvy investors, these may present an excellent buying opportunity in the tech and telecom sector.