Investors Eye Oversold Stocks in the Materials Sector

With recent downturns, some materials sector stocks are now viewed as undervalued investment opportunities.

The Relative Strength Index (RSI) is a valuable momentum indicator used by traders. It compares a stock’s performance on days it rises against days it falls. Typically, a stock is considered oversold when its RSI drops below 30, according to Benzinga Pro.

Here are the key oversold stocks in the materials sector, reflecting RSIs near or below 30.

Celanese Corporation CE

• On Nov. 11, UBS downgraded Celanese from Buy to Neutral, decreasing its price target from $161 to $97. Consequently, the stock saw a drop of roughly 10% over the past month and is trading at a 52-week low of $68.88.
• RSI Value: 25.90
• CE Price Action: Celanese shares gained 1.6%, ending at $70.54 on Friday.
• Benzinga Pro’s real-time newsfeed provided updates on CE stock.

Dow Inc DOW      

• On Dec. 3, Dow appointed Karen S. Carter as Chief Operating Officer. “Karen is a proven leader with over three decades of experience at Dow,” said Chairman and CEO Jim Fitterling. “She has demonstrated outstanding operational discipline while fostering relationships with key partners and driving innovation.” Despite this leadership change, Dow’s stock declined nearly 9% over the past month, reaching a 52-week low of $41.73.
• RSI Value: 24.25
• DOW Price Action: Shares dropped 0.5%, closing at $41.99 on Friday.
• Benzinga Pro’s charting tool tracked the downward trend in DOW stock.

Braskem SA ADR BAK

• On Sept. 18, UBS upgraded Braskem from Neutral to Buy, raising its price target from $7.70 to $10. Despite this positive outlook, the stock has dropped by about 12% in the last month, with a current 52-week low of $4.68.
• RSI Value: 24.38
• BAK Price Action: Braskem shares fell by 5.8%, finishing at $4.82 on Friday.
• Benzinga Pro’s signals highlighted potential for a breakout in BAK shares.

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