Potential Buying Opportunities in Oversold Industrials Stocks

The industrials sector currently features several oversold stocks that may present attractive buying opportunities for investors seeking undervalued companies.

The Relative Strength Index (RSI) serves as a momentum indicator, comparing a stock’s strength on days when prices rise against its performance on days when prices decline. When analyzed alongside a stock’s price actions, it offers traders insight into potential short-term performance. A stock is generally deemed oversold when the RSI falls below 30, according to Benzinga Pro.

Below are notable oversold companies in the industrials sector, all featuring RSI values near or below 30.

Verra Mobility Corp VRRM

• On February 27, Verra Mobility reported quarterly results that exceeded expectations. President and CEO David Roberts stated, “We delivered a solid fourth quarter, highlighted by strong earnings and cash flow generation.” Despite this, the company’s stock has declined roughly 23% over the past month, reaching a 52-week low of $19.51.
• RSI Value: 26.5
• VRRM Price Action: On Thursday, Verra Mobility’s shares rose 2.2%, closing at $20.20.
• Benzinga Pro’s real-time newsfeed highlighted the latest developments regarding VRRM.

AeroVironment, Inc. AVAV

• On March 4, AeroVironment released third-quarter financial results that fell short of expectations and provided FY25 guidance below projections. “We faced a number of short-term challenges in the third quarter, including unprecedented high winds and fires in Southern California, which affected our ability to meet our goals,” said Wahid Nawabi, the company’s chairman, president, and CEO. The stock has experienced a decline of approximately 21% in the past month, with a 52-week low of $110.07.
• RSI Value: 28
• AVAV Price Action: AeroVironment’s shares gained 2% to close at $123.99 on Thursday.
• Benzinga Pro’s charting tool aided in identifying trends in AVAV stock.

GMS Inc GMS

• On March 6, GMS reported third-quarter financial results that failed to meet expectations. “Our results in the quarter reflect the impact of soft end market demand and steel pricing, both of which deteriorated significantly during the latter half of the quarter, leading to lower-than-anticipated sales and gross margin compression.” stated John C. Turner, Jr., the President and CEO of GMS. The company’s stock has declined about 16% in the last month, reaching a 52-week low of $65.88.
• RSI Value: 24.1
• GMS Price Action: GMS shares fell 0.1% on Thursday, closing at $70.36.
• Benzinga Pro’s signals feature indicated a potential breakout for GMS shares.

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