Investors Eye Oversold Stocks in Materials Sector for Potential Gains

Many investors are looking at oversold stocks in the materials sector as an opportunity to secure undervalued holdings.

The Relative Strength Index (RSI) is a tool that helps traders gauge the momentum of a stock. It compares the strength of price increases to the strength of price declines. A stock is typically labeled as oversold if its RSI falls below 30, according to Benzinga Pro. This can help traders make more informed decisions about short-term trades.

Below is a summary of notable oversold stocks within this sector, which have RSIs near or below the 30 threshold.

Albemarle Corp ALB

• On January 28, analyst Peter Osterland of Truist Securities set a Hold rating for Albemarle and set a price target of $96. Over the past month, the stock has decreased by about 18% and reached a 52-week low of $71.97.
• RSI Value: 25.1
• ALB Price Action: Albemarle’s shares dropped 2.9%, closing at $75.14 on Monday.
• Benzinga Pro’s news updates kept investors informed about recent developments regarding ALB.

Purecycle Technologies Inc PCT

• On February 5, PureCycle announced they secured $33 million in funding. CEO Dustin Olson expressed enthusiasm about their partnership with Pleiad Investment Advisors, stating, “We’re making material progress with trials and are continuing to pursue commercial success in fiber and other applications.” The stock has fallen about 12% over the last month, with a 52-week low of $4.26.
• RSI Value: 28.5
• PCT Price Action: PureCycle’s shares declined by 2.1%, closing at $8.48 on Monday.
• Benzinga Pro’s analysis tools highlighted recent trends in PCT stock.

Northern Technologies International Corporation NTIC

• Northern Technologies is set to release its first-quarter fiscal 2025 financial results on January 9 before the market opens. Over the last month, NTIC’s stock has tumbled approximately 16%, with a 52-week low of $11.15.
• RSI Value: 27.6
• NTIC Price Action: Shares of Northern Technologies decreased 1%, closing at $11.16 on Monday.
• Benzinga Pro’s signal feature has indicated a potential breakout for NTIC shares.

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