## Oversold Industrials Stocks Present a Buying Opportunity: VRRM, HII, and JBI
The Industrials sector has been experiencing some turbulence lately, with several stocks falling below the oversold threshold. This downturn could actually represent a unique opportunity for savvy investors seeking to buy into undervalued companies with the potential for a rebound.
The Relative Strength Index (RSI) is a crucial indicator for gauging a stock’s momentum. It compares a stock’s strength on days when prices rise to its strength on days when prices fall. When the RSI falls below 30, it signals that a stock may be oversold and potentially ripe for a reversal.
Here, we take a closer look at three major players in the Industrials sector that have recently fallen into the oversold zone, using Benzinga Pro’s insightful data and analysis:
Verra Mobility Corp (VRRM):
On October 31, Verra Mobility announced third-quarter revenue results that fell short of expectations and issued FY24 revenue guidance that also missed the mark. Despite this news, CEO David Roberts expressed confidence in the company’s performance, highlighting its strong revenue, earnings, and cash flow generation. The stock took a hit, falling around 12% over the past five days and reaching a 52-week low of $18.76. However, VRRM’s RSI currently sits at 27.83, indicating potential oversold conditions. On Tuesday, shares of Verra Mobility gained 1.4% to close at $23.12.
Huntington Ingalls Industries Inc (HII):
Huntington Ingalls Industries also reported disappointing third-quarter financial results on October 31, with revenue falling short of expectations. The company revised its FY24 revenue outlook and withdrew its 5-year free cash flow outlook. As a result, the stock plunged approximately 24% over the past five days and hit a 52-week low of $184.29. With an RSI of 20.66, HII sits firmly in the oversold territory. Shares of Huntington Ingalls rose 1.2% to close at $193.24 on Tuesday.
Janus International Group Inc (JBI):
On October 29, Janus International Group announced third-quarter financial results that missed estimates, leading to a cut in FY24 sales guidance. CEO Ramey Jackson attributed the challenges to macroeconomic factors, interest rate uncertainty, and project delays. The company’s stock has fallen around 28% over the past month, reaching a 52-week low of $6.68. With an RSI of 20.90, JBI is currently considered oversold. Shares of Janus International Group fell 0.3% to close at $7.02 on Tuesday.
While past performance is not indicative of future results, the oversold nature of these companies presents a potential buying opportunity for investors seeking to capitalize on undervalued assets in the Industrials sector. Benzinga Pro’s real-time newsfeed and charting tools can provide valuable insights into the latest developments and trends surrounding these stocks, assisting investors in making informed decisions.
