The consumer staples sector often provides opportunities to invest in undervalued companies, and right now, several stocks are considered oversold. One way to identify these undervalued stocks is by using the Relative Strength Index (RSI). This momentum indicator compares a stock’s strength on days when prices rise to its strength on days when prices fall. Generally, when the RSI falls below 30, it signals that a stock is oversold and could be poised for a rebound.
Here are three consumer staples companies currently trading at or below an RSI of 30, presenting potential buying opportunities:
Dollar Tree Inc (DLTR)
On July 18, JP Morgan analyst Matthew Boss maintained an Overweight rating for Dollar Tree and raised the price target from $135 to $148. However, the stock has fallen about 10% over the past month, reaching a 52-week low of $23.69. Despite this recent decline, Dollar Tree’s RSI currently sits at 27.53, indicating a potential oversold condition.
Estee Lauder Companies Inc (EL)
Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating for Estee Lauder Cos on August 13, keeping the price target at $115. The stock has experienced a significant decline, dropping around 15% over the past month, reaching a 52-week low of $86.05. With an RSI of 18.84, Estee Lauder is deeply oversold, suggesting a possible rebound in the near future.
Vital Farms, Inc. (VITL)
Vital Farms recently announced better-than-expected quarterly results. The company’s second-quarter net revenue reached $147.4 million, representing a 38.5% increase year-over-year. Despite this positive news, the stock has fallen approximately 27% over the past month, hitting a 52-week low of $10.30. However, with an RSI of 27.47, Vital Farms is also considered oversold, potentially indicating an attractive entry point for investors.
These oversold conditions present potential opportunities for investors seeking undervalued stocks in the consumer staples sector. However, it’s crucial to conduct thorough research and consider individual investment goals and risk tolerance before making any investment decisions. This information is provided for general informational purposes only, and does not constitute investment advice.
