The consumer discretionary sector is brimming with potential opportunities for savvy investors, as several stocks are currently considered oversold. This means they might be trading below their true value, presenting a chance to buy into undervalued companies.
One way to identify oversold stocks is by using the Relative Strength Index (RSI). The RSI is a momentum indicator that compares a stock’s strength during upward price movements to its strength during downward movements. When the RSI dips below 30, it typically signals that a stock is oversold.
Here are three companies in the consumer discretionary sector with RSI values near or below 30, making them potential candidates for your portfolio:
Light & Wonder Inc (LNW):
Macquarie analyst Chad Beynon recently maintained an Outperform rating on Light & Wonder, lowering the price target from $122 to $117. While the company’s stock has seen a decline of roughly 19% over the past month, it’s important to note that it has a 52-week low of $67.71. With an RSI value of 26.57, LNW could be an attractive option for investors seeking a potential rebound.
MakeMyTrip Ltd (MMYT):
B of A Securities analyst Sachin Salgaonkar maintains a Buy rating on MakeMyTrip, raising the price target from $100 to $112. Despite a recent 18% drop over the past five days, the stock has a 52-week low of $36.81. With an RSI value of 29.31, MMYT could be worth considering for investors seeking exposure to the travel industry.
Advance Auto Parts, Inc. (AAP):
Mizuho analyst David Bellinger maintains a Neutral rating on Advance Auto Parts, lowering the price target from $45 to $38. The company’s stock has experienced a 15% decline over the past month, with a 52-week low of $37.08. However, an RSI value of 27.47 suggests potential undervaluation.Remember, it’s crucial to conduct thorough research and consider your own investment goals and risk tolerance before making any investment decisions. The information provided here is not financial advice.
