The industrials sector is currently experiencing a wave of oversold stocks, potentially offering a compelling entry point for investors seeking undervalued companies. The Relative Strength Index (RSI) is a crucial momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. A stock is generally considered oversold when its RSI dips below 30. Let’s delve into three prominent examples:
Hyzon Motors Inc (HYZN)
On August 13, Hyzon Motors released disappointing second-quarter financial results. Despite this, CEO Parker Meeks emphasized the company’s strategic focus on the North American Class 8 and refuse markets, positioning them for potential future growth. However, the stock has witnessed a substantial decline of around 47% over the past five days, hitting a 52-week low of $0.050.
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RSI Value:
25.52*
Price Action:
Hyzon Motors shares closed at $0.054 on Friday, experiencing a 27.8% drop.Velo3D Inc (VLD)
Velo3D reported a year-over-year increase in adjusted earnings per share (EPS) for the second quarter on August 14. CEO Brad Kreger highlighted their progress in strategic priorities, including a strong backlog and reduced operating expenses. Nonetheless, the company’s stock has fallen approximately 46% over the last five days, reaching a 52-week low of $1.23.
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RSI Value:
23.62*
Price Action:
Velo3D shares closed at $1.23 on Friday, registering a 5.4% decline.Array Technologies Inc (ARRY)
Array Technologies delivered strong second-quarter earnings, exceeding analyst expectations. They reported earnings of 20 cents per share, surpassing the consensus estimate of 11 cents by a significant 81.82%. However, the company revised its fiscal year outlook downward, leading to a decline in its stock price.
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RSI Value:
23.63*
Price Action:
Array Technologies shares closed at $6.55 on Friday, experiencing a minor 0.8% increase.These oversold industrials stocks represent potential opportunities for investors. However, conducting thorough research, understanding the underlying factors contributing to their decline, and considering individual risk tolerance is crucial before making any investment decisions.
