Buying Opportunity: Oversold Tech Stocks to Watch

The information technology sector is showing promising signs for investors looking to grab undervalued stocks. Recent analysis highlights several companies that are currently considered oversold, based on the Relative Strength Index (RSI), a tool used to assess stock performance.

The RSI measures a stock’s upward momentum compared to its downward momentum. A stock is typically labeled as oversold when its RSI is below 30, suggesting it may be undervalued and could rebound in the short term, according to data from Benzinga Pro.

Here’s a look at some major oversold companies with an RSI near or below 30.

Monday.Com Ltd MNDY

• Piper Sandler analyst Brent Bracelin recently maintained an Overweight rating for Monday.Com, adjusting the price target from $350 to $345. Over the last month, the stock has seen a decline of about 22%, hitting a 52-week low of $174.75.
• RSI Value: 27.1
• MNDY Price Action: Monday.Com shares dropped 4.9%, closing at $225.36 on Tuesday.
• Benzinga Pro’s real-time news feed provided updates on the latest developments regarding MNDY.

Microchip Technology Inc MCHP

• On December 16, B of A Securities downgraded Microchip’s stock from Neutral to Underperform, reducing the price target from $80 to $65. The stock experienced a 7% decline over the past month, reaching a 52-week low of $55.29.
• RSI Value: 28.4
• MCHP Price Action: Microchip Technology shares fell 1.4% to close at $57.47 on Tuesday.
• Benzinga Pro’s charting tool aided in tracking the trend of MCHP stock.

Western Digital Corp WDC

• On January 3, Mizuho analyst Vijay Rakesh maintained an Outperform rating for Western Digital while adjusting the price target down from $90 to $82. The stock has declined roughly 8% over the past month, reaching a 52-week low of $48.96.
• RSI Value: 29.6
• WDC Price Action: Shares of Western Digital decreased by 1.2%, closing at $64.87 on Tuesday.
• Benzinga Pro’s signals feature indicated a possible breakout for WDC shares.

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