The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
Mullen Automotive, Inc. (NASDAQ: MULN)
- Mullen highlighted its cash position of $135 million in a letter to shareholders and said it believes it's currently trading at a discount relative to its cash holdings. The company also noted that its stock has declined 90% since the end of March. "Despite the decline in stock price, management believes we are in position to meet the previously announced objectives for moving first into the production and then sale of our Class 3 commercial vehicles during the quarter ending Sept. 30, 2023," the company said. The company's stock has a 52-week low of $0.20 .
- RSI Value: 29.82
- MULN Price Action: Shares of Mullen Automotive rose 16.3% to close at $0.2616 on Thursday.
- EBET said Aspire shut down activities in Germany on May 7. It has a 52-week low of $0.1890.
- RSI Value: 29.44
- EBET Price Action: Shares of EBET fell 1.5% to close at $0.1960 on Thursday.
- JOANN reported worse-than-expected first-quarter financial results. Chris DiTullio, JOANN's Chief Customer Officer and co-lead of the Interim Office of the CEO commented, "Our focus in fiscal year 2024 is to deliver significant cash flow improvement and emphasize the fundamentals that have made JOANN the nation's leading fabric and sewing retailer and a strong competitor in the arts and crafts space." The company's stock has a 52-week low of $0.95.
- RSI Value: 26.97
- JOAN Price Action: Shares of JOANN fell 0.9% to close at $0.9805 on Thursday.
- Greenland Holdings, Inc. GNLN, announced the launch of the DaVinci ARTIQ, the newest in a line of premium portable vaporizers. "Five years in the making, the ARTIQ delivers an experience like no other. The ARTIQ offers an extended air path with bottom airflow cartridges that cool hot vapor to room temperature levels, eliminating short sessions," the company told Benzinga. The company's 52-week low is $1.95.
- RSI Value: 11.86
- GNLN Price Action: Shares of Greenlane Holdings fell 0.5% to close at $1.96 on Thursday.
- Advance Auto Parts said first quarter results missed expectations. The company also reduced its full-year guidance and decided to reduce its quarterly dividend. "We expect the competitive dynamics we faced in the first quarter to continue, resulting in a shortfall to our 2023 expectations," said Tom Greco, president and CEO. The company has a 52-week low of $63.56.
- RSI Value: 24.54
- AAP Price Action: Shares of Advance Auto Parts fell 0.4% to close at $69.91 on Thursday.