Top Oversold Stocks in Consumer Discretionary Sector: Buying Opportunities

Investors might find potential bargains in the consumer discretionary sector, as several stocks have recently become oversold. An oversold condition typically indicates a stock may be undervalued and presents a buying opportunity.

The Relative Strength Index (RSI) serves as a momentum indicator. This tool compares a stock’s upward price strength to its downward strength over a specific period. When assessing a stock’s performance, an RSI below 30 generally indicates it is oversold, as explained by Benzinga Pro.

Here’s a look at notable oversold stocks in the consumer discretionary sector, all with an RSI value close to or below 30.

Kirkland’s, Inc. KIRK

• On February 18, Kirkland’s reported anticipated fourth-quarter net sales of $148 million and an earnings per share (EPS) forecast of 50 cents. The company’s stock has declined approximately 22% over the last month, hitting a 52-week low of $1.22.
• RSI Value: 21.7
• KIRK Price Action: Kirkland’s shares decreased by 4.7%, closing at $1.23 on Thursday.
• Benzinga Pro’s real-time newsfeed provided updates on the latest developments regarding KIRK.

Wayfair Inc W

• Wayfair released its fourth-quarter results on February 20, reporting an adjusted EPS loss of 25 cents, compared to an analyst consensus loss estimate of 2 cents per share. CEO Niraj Shah noted that the results led to nearly $100 million in adjusted EBITDA for the quarter, positioning the company for approximately 50% year-over-year dollar growth in 2024. Wayfair’s stock has fallen around 24% in the past month, reaching a 52-week low of $32.50.
• RSI Value: 26.8
• W Price Action: Shares of Wayfair dropped 3.4% to settle at $33.10 on Thursday.
• Benzinga Pro’s charting tools assisted in identifying W’s stock trend.

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