Investors are eyeing the materials sector’s most oversold stocks, viewing them as an entry point into undervalued companies.
One common metric for evaluating momentum in stocks is the Relative Strength Index (RSI). When the RSI dips below 30, a stock is often considered oversold, potentially hinting at near-term performance, based on insights from market research tool, Benzinga Pro.
Let’s delve into the current leaders of the oversold pack in the materials industry, with RSIs hovering at or below the critical 30 level.
Tronox Holdings PLC TROX
- Recently, Tronox Holdings disclosed disappointing second-quarter results, leading to a 7% decline in its stock over the past week and hitting a 52-week low of $10.08.
- RSI Value: 27.54
- TROX Price Action: Tronox shares dipped by 0.3% to close at $11.71 on the last trading day.
Clearwater Paper Corp CLW
- Clearwater Paper recently reported quarterly losses amounting to $1.55 per share. Despite this, the company remains optimistic about future prospects post-acquisition. Its stock dropped by around 11% over the past month, hitting a 52-week low of $27.69.
- RSI Value: 28.09
- CLW Price Action: Clearwater Paper shares saw a 2.8% rise, closing at $28.81 on the most recent trading day.
Ascent Industries Co ACNT
- Ascent Industries recently reported quarterly losses of 2 cents per share, coupled with sales of $50.189 million. Despite ongoing market challenges, the company sees positive signs from its strategic initiatives. The stock witnessed an 8% drop over the past five days, hitting a 52-week low of $7.27.
- RSI Value: 29.92
- ACNT Price Action: Ascent Industries shares declined by 3.1% to conclude at $9.25 on the latest trading day.
By examining the RSIs and recent price movements of these key players, investors can gauge potential opportunities in the materials sector amid prevailing market conditions.