The Industrials sector is currently presenting a unique opportunity for value investors seeking undervalued companies. One strategy to identify these hidden gems is by utilizing the Relative Strength Index (RSI), a momentum indicator that compares a stock’s strength during price increases to its strength during price declines. When the RSI dips below 30, it often signals that a stock is oversold and may be ripe for a rebound.
Let’s dive into some key players in the Industrials sector that have recently shown RSI values near or below 30, indicating potential oversold conditions:
Core & Main Inc (CNM)
On September 4th, Core & Main reported second-quarter financial results that fell short of expectations. The company also lowered its FY24 net sales guidance, leading to a decline in its share price. Although the stock has dropped approximately 22% over the past month, it currently has an RSI of 25.50, suggesting potential oversold territory. This could present an attractive entry point for investors who believe the company’s long-term growth prospects remain intact.
Avis Budget Group Inc (CAR)
On September 10th, Avis Budget Group announced the pricing of $700 million in senior notes. This news contributed to a recent 19% decline in the company’s stock price. However, with an RSI of 26.27, Avis Budget may also be considered oversold. Investors looking to capitalize on a potential rebound may want to closely monitor its price action and consider adding it to their watchlist.
Golden Ocean Group Ltd (GOGL)
Golden Ocean Group delivered better-than-expected quarterly earnings on August 28th. Despite a volatile macroeconomic environment, the company highlighted a healthy dry bulk shipping market and continued above-market performance. However, the company’s shares have still seen a 7% decline over the past month. With an RSI of 29.58, Golden Ocean could present an attractive buying opportunity for those seeking exposure to the dry bulk shipping sector.
It’s important to remember that RSI is just one tool for analyzing stock performance. Always conduct thorough research, consider your own risk tolerance, and consult with a financial advisor before making any investment decisions.
