The financials sector is currently experiencing a downturn, presenting potential opportunities for investors looking to buy undervalued companies. One way to identify these opportunities is by using the Relative Strength Index (RSI), a momentum indicator that compares a stock’s strength on days when prices rise to its strength on days when prices fall. When the RSI dips below 30, it signals that a stock might be oversold and potentially poised for a rebound.
Here are three major oversold players in the financials sector, with RSI values near or below 30:
Highest Performances Holdings Inc (HPH)
* On May 30, HPH reported first-half revenue of $5 million.
* The company’s stock has experienced a significant decline, falling approximately 72% over the past month and reaching a 52-week low of $1.70.
*
RSI Value:
11.03*
Price Action:
HPH shares gained 12.8% on Wednesday, closing at $1.70.B Riley Financial Inc (RILY)
* On August 12, B Riley Financial released preliminary second-quarter financial results.
* Bryant Riley, Chairman and Co-Chief Executive Officer, stated that the results were negatively impacted by non-cash losses, primarily related to investments in Franchise Group, Inc. (FRG) and Vintage Capital loan receivable, which is collateralized by equity interests in FRG. The substantial write-down was attributed to a weaker consumer spending environment impacting FRG’s businesses and investments.
* The company’s stock has fallen approximately 61% over the past five days.
* It has a 52-week low of $6.66.
*
RSI Value:
20.72*
Price Action:
RILY shares closed at $6.97 on Wednesday, down 3.5%.MarketWise Inc (MKTW)
* The company announced the registration of its Chairman and CEO last week.
* The company’s shares have fallen around 28% over the past five days and have a 52-week low of $0.72.
*
RSI Value:
25.96*
Price Action:
MKTW shares closed at $0.72 on Wednesday, down 3.3%.These oversold stocks may present attractive buying opportunities for investors who believe in the long-term potential of these companies. However, it is essential to conduct thorough research and consider your own risk tolerance before making any investment decisions. Always consult with a financial advisor for personalized advice.
