McGrath RentCorp’s Stock Hits Oversold Status: A Closer Look

The DividendRank formula from Dividend Channel evaluates a vast range of dividend stocks using a proprietary method that identifies those with solid fundamentals and attractive valuations. Currently, McGrath RentCorp (Symbol: MGRC) ranks in the top 50% of this universe, indicating it could be a noteworthy investment for further consideration by investors.

On a recent trading day, shares of McGrath RentCorp fell into oversold territory, hitting a low of $112 per share. This classification is based on the Relative Strength Index (RSI), which measures momentum on a scale from zero to 100. A stock is deemed oversold when the RSI drops below 30. For McGrath RentCorp, the RSI currently stands at 29.4, while the broader group of dividend stocks tracked by Dividend Channel averages an RSI of 45.6. When stock prices decline, it presents dividend investors with a more favorable opportunity for higher yields. MGRC’s latest annual dividend of $1.94 per share, paid quarterly, translates to an annual yield of 1.69% based on the recent share price of $114.86.

Investors inclined towards a bullish view might interpret MGRC’s 29.4 RSI as a signal that the recent selling pressure is nearing its limit. This could prompt them to search for advantageous entry points for purchase. To assess whether to adopt a bullish stance on MGRC, investors should consider its dividend history, which can provide insight into the likelihood of continued dividend payments.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.