The most oversold stocks in the materials 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, according to Benzinga Pro.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
Commercial Metals Co (NYSE:CMC)
- On Dec. 12, UBS analyst Curt Woodworth downgraded Commercial Metals from Buy to Sell and lowered the price target from $62 to $56. The company's stock fell around 19% over the past month and has a 52-week low of $47.42.
- RSI Value: 27
- CMC Price Action: Shares of Commercial Metals gained 1.5% to close at $50.27 on Friday.
- Benzinga Pro's real-time newsfeed alerted to latest CMC news.
Cleveland-Cliffs Inc (NYSE:CLF)
- On Dec. 19, Citigroup analyst Alexander Hacking maintained Cleveland-Cliffs with a Neutral and lowered the price target from $12.5 to $11. The company's stock fell around 25% over the past month and has a 52-week low of $9.13.
- RSI Value: 28
- CLF Price Action: Shares of Cleveland-Cliffs gained 0.5% to close at $9.38 on Friday.
- Benzinga Pro's charting tool helped identify the trend in CLF stock.
Quaker Chemical Corp (NYSE:KWR)
- On Nov. 18, Quaker Houghton board appointed Joseph Berquist as CEO and President, and a member of Board. The company's stock fell around 15% over the past month and has a 52-week low of $137.65
- RSI Value: 24
- KWR Price Action: Shares of Quaker Chemical fell 1.7% to close at $138.61 on Friday.
- Benzinga Pro's signals feature notified of a potential breakout in KWR shares.
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