The consumer discretionary sector is ripe with opportunities as oversold stocks present a compelling chance to invest in undervalued companies.
The Relative Strength Index (RSI) is a key momentum indicator used to gauge the strength of a stock. When the RSI falls below 30, a stock is considered oversold, signaling a potential rebound in the short term.
Here’s a closer look at some of the most oversold stocks in the consumer discretionary sector with RSI near or below 30.
Mobileye Global Inc. MBLY
- On January 8, Mobileye Global revealed a series of production design wins by a “major” Western automaker, propelling its stock to a 52-week low of $27.29, a decline of approximately 34% over the past month.
- RSI Value: 20.35
- MBLY Price Action: Mobileye Global gained 1% to close at $28.34 on Friday.
Faraday Future Intelligent Electric Inc. FFIE
- Faraday Future Intelligent Electric received a warning from Nasdaq on December 28, 2023, for not maintaining the minimum share price required for listing, driving its stock down roughly 55% over the past month to a 52-week low of $0.1550.
- RSI Value: 27.04
- FFIE Price Action: Faraday Future Intelligent Electric fell 3% to close at $0.1562 on Friday.
Vision Marine Technologies Inc. VMAR
- On December 14, Vision Marine Technologies announced a $3 million private placement of convertible preferred shares and warrants, leading to a 35% decline in stock price over the past month to a 52-week low of $0.69.
- RSI Value: 29.05
- VMAR Price Action: Vision Marine Technologies fell 6.4% to close at $0.7510 on Friday.
U Power Limited UCAR
- On November 13, VYNE Therapeutics posted a narrower-than-expected quarterly loss, however, the company’s shares dropped around 24% over the past month, hitting a 52-week low of $0.1060.
- RSI Value: 12.96
- UCAR Price Action: U Power surged 10.2% to close at $0.1230 on Friday.
Digital Brands Group, Inc. DBGI
- On January 16, Digital Brands Group signed a letter of intent to open a retail store in March, amidst a 16% decrease in stock price over the past five days, reaching a 52-week low of $2.31.
- RSI Value: 28.93
- DBGI Price Action: Digital Brands fell 0.8% to close at $2.37 on Friday.
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