Energy Sector: Investment Opportunities in Oversold Stocks

In the energy sector, some stocks have been deemed oversold, indicating a potential chance for investors to buy undervalued companies.

The Relative Strength Index (RSI), a momentum indicator, measures a stock’s performance by comparing the strength of its price rises to its price falls. An RSI below 30 typically suggests that a stock may be oversold, as detailed by Benzinga Pro.

Below is the latest list of notable oversold stocks in the energy sector, all with an RSI close to or below 30.

DMC Global Inc BOOM

• On Nov. 13, DMC Global announced the retirement of Michael Kuta as President, CEO, and board member, effective Nov. 29. James O’Leary has been appointed Interim President & CEO. The stock has experienced a decline of roughly 35% over the past month, with a 52-week low of $7.96.
• RSI Value: 28.02
• BOOM Price Action: Shares increased by 1.1%, closing at $8.23 on Thursday.
• Benzinga Pro’s real-time newsfeed highlighted the latest updates on BOOM.

Tidewater Inc TDW

• On Nov. 7, Tidewater reported disappointing third-quarter financial outcomes and provided FY24 revenue guidance that fell short of expectations. President and CEO Quintin Kneen stated, “Our third quarter revenue of $340.4 million and gross margin of 47.2% met our projections, with our consolidated average day rate increasing over 5% to $22,275.” The stock dropped approximately 16% over the past month, with a 52-week low of $52.61.
• RSI Value: 28.57
• TDW Price Action: Shares rose by 0.2%, finishing at $53.19 on Thursday.
• Benzinga Pro’s charting tool identified recent trends in TDW stock.

Ardmore Shipping Corp ASC

• On Nov. 6, Ardmore Shipping reported a quarterly earnings of 55 cents per share, below the analyst consensus of 62 cents. However, its quarterly sales of $96.118 million exceeded expectations of $74.252 million. The stock has dropped around 28% in the past month, with a 52-week low of $11.85.
• RSI Value: 11.32
• ASC Price Action: Shares increased by 0.1%, closing at $11.95 on Thursday.
• Benzinga Pro’s signals feature indicated a potential rise in ASC shares.

Torm PLC TRMD

• On Nov. 7, TORM announced quarterly earnings of $1.38 per share, which fell short of the analyst consensus estimate of $1.51. The company’s quarterly sales of $372.100 million surpassed the estimated $285.996 million. Torm’s shares have declined about 21% over the last month, with a 52-week low of $22.77.
• RSI Value: 20.94
• TRMD Price Action: Shares fell by 0.4%, closing at $23.63 on Thursday.
• Benzinga Pro’s earnings calendar was utilized to monitor TRMD’s upcoming earnings reports.

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