Investors Eye Undervalued Stocks as Communication Services Sector Sees RSI Dips

The communication services sector is offering promising buying opportunities as several major stocks become oversold.

The Relative Strength Index (RSI) is a key indicator used by traders to assess a stock’s momentum. It measures the strength of price movements, comparing days of gains to days of losses. Stocks are generally viewed as oversold when their RSI dips below 30, according to Benzinga Pro. Here’s a look at notable stocks currently in that category.

Commercial Metals Company CMC

• Commercial Metals plans to announce its first quarter earnings on January 6, 2025. The stock has decreased by about 2% over the past five days and reached a 52-week low of $45.55.
• RSI Value: 28.93
• CMC Price Action: On Tuesday, shares fell 0.8%, closing at $61.75.
• Benzinga Pro’s real-time newsfeed has been tracking the latest developments regarding CMC.

Madison Square Garden Entertainment Corp MSGE

• This past December 3, Madison Square Garden Entertainment bought back $25 million worth of its Class A common stock. The company’s stock has dropped about 8% in the last five days, hitting a 52-week low of $30.10.
• RSI Value: 29.89
• MSGE Price Action: Shares declined by 3.6%, finishing at $35.59 on Tuesday.
• Benzinga Pro’s charting tool signaled the recent trends in MSGE stock.

Omnicom Group Inc OMC

• On December 9, Omnicom Group announced its intention to acquire Interpublic Group of Companies, Inc. in a stock-for-stock deal. Interpublic shareholders will receive 0.344 shares of Omnicom for each share they own. Recently, Omnicom’s shares have fallen approximately 11% in five days, sinking to a 52-week low of $82.26.
• RSI Value: 28.93
• OMC Price Action: On Monday, shares dropped by 0.4%, closing at $92.46.
• Benzinga Pro’s signals feature pointed out a possible breakout in OMC shares.

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