Warren Buffett’s Wisdom: Time to Consider ePlus Inc as it Hits Oversold Levels

Legendary investor Warren Buffett encourages caution when others exhibit greed, while suggesting that one should seek opportunities when fear dominates the market. A technical analysis tool known as the Relative Strength Index (RSI) provides insights into market sentiment, measuring momentum on a scale of zero to 100. Stocks are generally deemed oversold when their RSI reading drops below 30.

On Thursday, shares of ePlus Inc (Symbol: PLUS) saw an RSI of 29.5, indicating oversold conditions, as the stock traded as low as $88.71 per share. In comparison, the S&P 500 ETF (SPY) currently has an RSI reading of 44.0. For optimistic investors, PLUS’s RSI of 29.5 suggests that the recent selling pressure may be waning, creating potential buying opportunities. The one-year performance of PLUS shares is illustrated in the chart below:

Examining the chart, we note that PLUS’s 52-week low is $53.535 per share, and its high is $102.985. The stock’s last trade settled at $88.95, falling closer to its lower range in recent trading.

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