The materials sector is offering a tempting landscape for investors seeking undervalued companies. One powerful indicator to identify these opportunities is the Relative Strength Index (RSI), a momentum indicator that compares a stock’s upward strength against its downward strength. Stocks with an RSI below 30 are generally considered oversold, potentially indicating a good time to buy.
Let’s explore three oversold companies in the materials sector that could be worth a closer look:
H.B. Fuller Company (FUL)
H.B. Fuller’s recent third-quarter financial results fell short of expectations, causing its stock to drop around 3% over the past five days. However, the company’s CEO, Celeste Mastin, remains optimistic, highlighting their progress in expanding EBITDA margins through strategic acquisitions and restructuring. While the stock currently sits at an RSI of 28.45 and a 52-week low of $64.64, its recent price action indicates a possible rebound.
Clearwater Paper Corp (CLW)
Clearwater Paper reported quarterly losses of $1.55 per share in August. Despite this, the company remains confident in its tissue business and anticipates a recovery in paperboard demand in the coming quarters. Despite a 15% decline in stock price over the past month, Clearwater Paper still maintains a 52-week low of $27.69. With an RSI of 28.90, it’s a stock that might be worth keeping an eye on for potential gains.
Bioceres Crop Solutions Corp (BIOX)
Bioceres’ fourth-quarter sales fell short of expectations, leading to a 22% drop in its stock price over the past month. However, CEO Federico Trucco emphasizes that their overall financial performance remains strong, with record-high revenue and adjusted EBITDA levels. Despite this recent setback, Bioceres’ stock is currently trading at an RSI of 21.88 and a 52-week low of $7.74, making it a potentially attractive entry point for long-term investors.
Remember, this analysis is for informational purposes only and does not constitute investment advice. It’s essential to conduct your own research and consult with a financial advisor before making any investment decisions.
