Warren Buffett’s Wisdom: Analyzing Recent Fear in Tractor Supply Co. Stock
When market sentiment shifts, it’s crucial to assess investor behavior. Legendary investor Warren Buffett suggests being cautious when others are overly optimistic and embracing opportunities when fear prevails. A useful tool for measuring this fear is the Relative Strength Index (RSI), which gauges a stock’s momentum on a scale from zero to 100. Typically, a reading below 30 indicates that a stock is oversold.
On Tuesday, Tractor Supply Co. (Symbol: TSCO) saw its shares enter oversold territory with an RSI of 29.9, trading as low as $267.19. In contrast, the S&P 500 ETF (SPY) holds a much higher RSI at 62.7. For bullish investors, TSCO’s current RSI may suggest that the recent wave of selling is nearing its end, prompting them to explore potential buying opportunities. The chart below illustrates TSCO’s stock performance over the past year:
Reviewing the performance chart, TSCO’s lowest price in the past 52 weeks was $186.06, whereas the highest was $307.64. Currently, the stock is trading at $268.80.
Explore 9 other oversold stocks to watch »
Additional Resources:
- Institutional Holders of AMRH
- MBSD Dividend History
- CIFC Insider Buying
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
