The most oversold stocks in the communication services 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.
Trade Desk Inc (NASDAQ:TTD)
- On March 18, Keybanc analyst Justin Patterson maintained Trade Desk with an Overweight and lowered the price target from $130 to $74.. The company's stock fell around 27% over the past month and has a 52-week low of $53.42.
- RSI Value: 26.3
- TTD Price Action: Shares of Trade Desk gained 3.2% to close at $55.32 on Wednesday.
- Benzinga Pro's real-time newsfeed alerted to latest TTD news.
Playtika Holding Corp (NASDAQ:PLTK)
- On Feb. 27, Playtika Holding posted fourth-quarter GAAP loss of 4 cents per share. "We are thrilled with the progress we have made in executing our return to growth strategy, highlighted by our successful acquisition of SuperPlay," said Robert Antokol, Chief Executive Officer. "Looking ahead, we are excited by our pipeline of new games and continued M&A opportunities, which we believe will drive consistent topline growth and create value for our shareholders." The company's stock fell around 36% over the past month and has a 52-week low of $4.56.
- RSI Value: 21.4
- PLTK Price Action: Shares of Playtika Holding gained 0.7% to close at $4.56 on Wednesday.
- Benzinga Pro's charting tool helped identify the trend in PLTK stock.
Cumulus Media Inc (NASDAQ:CMLS)
- On Feb. 27, Cumulus Media posted downbeat quarterly results. Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, "Since the pandemic's onset, the radio industry has experienced tough economic and secular headwinds. In the face of those, we outperformed our peers through the end of 2023 on key metrics including cost takeouts, EBITDA margin recovery, free cash flow generation, net leverage, and liquidity." The company's stock fell around 53% over the past month and has a 52-week low of $0.41.
- RSI Value: 27
- CMLS Price Action: Shares of Cumulus Media fell 2.8% to close at $0.45 on Wednesday.
- Benzinga Pro's signals feature notified of a potential breakout in CMLS shares.
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Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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