Identifying the Most Oversold Stocks in the Materials Sector

Investors now face an opportunity to acquire undervalued companies within the materials sector, particularly those identified as oversold.

The Relative Strength Index (RSI) is a key momentum indicator that measures a stock’s strength on days when prices rise against days when prices fall. By relating the RSI to a stock’s price movement, traders can better predict potential short-term performance. A stock is deemed oversold when its RSI falls below 30, as noted by Benzinga Pro.

Below is the current list of notable oversold stocks in the materials sector, each having an RSI close to or below 30.

Arq Inc ARQ

On April 2, Arq appointed Jay Voncannon as Chief Financial Officer. Bob Rasmus, CEO of Arq, expressed optimism about Voncannon’s role, highlighting his proven financial leadership and strategic insights. Over the past month, the company’s stock has decreased by approximately 26%, reaching a 52-week low of $3.40.
RSI Value: 28.1
ARQ Price Action: Arq shares closed at $3.57 on Monday.
Edge stock ratings indicate a momentum score of 13.21 and a value score of 76.61.

Rayonier Advanced Materials Inc RYAM

On March 5, Rayonier Advanced Materials announced quarterly results that exceeded expectations. De Lyle Bloomquist, President and CEO, described 2024 as a transformative year, marking key strategic milestones for the company. Despite these successes, RYAM’s stock has fallen by about 13% in the past month, with a 52-week low of $3.72.
RSI Value: 29.9
RYAM Price Action: Shares of Rayonier Advanced Materials rose 1.1%, closing at $4.73 on Monday.
Benzinga Pro’s charting tool indicated a positive trend for RYAM stock.

Northern Technologies International Corporation NTIC

On April 10, Northern Technologies reported lower-than-expected quarterly results. G. Patrick Lynch, President and CEO, commented on the challenges facing NTIC, including shifts in trade policies and seasonal fluctuations in their oil and gas businesses. The company’s stock dropped around 26% over the last five days and hit a 52-week low of $7.12.
RSI Value: 14.1
NTIC Price Action: NTIC shares declined by 5.5%, closing at $7.25 on Monday.
Benzinga Pro’s signals feature indicated a potential breakout for NTIC shares.