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Why Oversold Energy Stocks Could Be a Bargain Investment Why Oversold Energy Stocks Could Be a Bargain Investment


The fortune of the most oversold stocks in the energy sector might be about to turn. Their oversold status presents what might be a promising opportunity for buyers to capitalize on undervalued companies.

The Relative Strength Index (RSI) is a momentum indicator that juxtaposes a stock’s strength on up days to its strength on down days. By comparing this to a stock’s price behavior, traders can gain insights into its short-term performance. An asset is generally deemed oversold when the RSI is below 30, according to market analysis platform Benzinga Pro.

Here’s a recent roster of prominent oversold players in the energy sector, boasting an RSI near or below 30.

San Juan Basin Royalty Trust SJT

  • San Juan Basin Royalty Trust reached a settlement agreement with Hilcorp for $1.04 million on September 7. The firm’s stock plummeted approximately 25% in the past month and has scraped a 52-week low of $4.93.
  • RSI Value: 28.71
  • SJT Price Action: On Thursday, shares of San Juan Basin Royalty Trust ascended 2% and closed at $5.13.

Hallador Energy Company HNRG

  • On November 6, Hallador Energy reported underwhelming quarterly earnings. Brent Bilsland, President and Chief Executive Officer, remarked, “High coal sales prices coupled with large coal shipment volumes lead to record coal revenue. Our well-contracted sales book supported our revenue growth despite operational challenges, increasing our cost per ton during the quarter.” The company’s shares plummeted approximately 28% in the past month and have stumbled upon a 52-week low of $6.87.
  • RSI Value: 22.44
  • HNRG Price Action: On Thursday, shares of Hallador Energy descended 0.6% and closed at $8.95.
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Permianville Royalty Trust PVL

  • On December 18, Permianville Royalty Trust released a monthly operational update. The company’s shares dipped around 25% in the past month and have hit a 52-week low of $1.46.
  • RSI Value: 27.98
  • PVL Price Action: On Thursday, shares of Permianville Royalty Trust slipped 1.4% and closed at $1.46.

 

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