The consumer discretionary sector is presenting a unique opportunity for investors as oversold stocks are emerging as potential value buys.
The RSI (Relative Strength Index) is indicating that several consumer stocks have reached oversold levels, a metric valued by traders for gauging a stock’s short-term performance. When the RSI falls below 30, it signals that the stock may be undervalued, presenting an attractive buy opportunity.
Let’s delve into the top consumer stocks that have recently hit oversold levels and are poised for a potential rebound in Q1.
Mobileye Global Inc. (NASDAQ: MBLY)
- Mobileye Global Inc reported a fiscal fourth-quarter 2023 revenue growth of 13% year-on-year to $637.0 million, missing the consensus of $639.8 million. The company’s stock has declined by approximately 13% over the past month and is currently hovering near its 52-week low of $25.32.
- RSI Value: 28.89
- Price Action: Shares of Mobileye Global gained 3% to close at $26.57 on Friday.
Cazoo Group Ltd (NYSE: CZOO)
- The recent announcement by Cazoo Group regarding its need to raise additional capital before the second half of 2024 has contributed to a substantial drop in the company’s stock, which is down by approximately 48% over the past month and is currently near its 52-week low of $3.72.
- RSI Value: 24.70
- Price Action: Shares of Cazoo Group rose 2.4% to close at $4.23 on Friday.
WW International, Inc. (NASDAQ: WW)
- WW International announced the launch of WeightWatchers GLP-1 Program, aiming to provide tailored behavioral support for individuals on a GLP-1 medication. However, the company’s stock has witnessed a decline of approximately 38% over the past month and is currently trading near its 52-week low of $3.46.
- RSI Value: 27.90
- Price Action: Shares of WW International gained 1.7% to close at $4.02 on Friday.
Tesla, Inc. (NASDAQ: TSLA)
- Tesla reported fourth-quarter revenue of $25.17 billion, up 3% year-over-year, missing Street consensus estimates. The company’s shares have declined by around 21% over the past month and are currently trading close to their 52-week low of $152.37.
- RSI Value: 27.24
- Price Action: Shares of Tesla fell 0.5% to close at $187.91 on Friday.
PDD Holdings Inc. (NASDAQ: PDD)
- PDD Holdings Inc. witnessed a 9% decline in its stock over the last five days and is currently trading near its 52-week low of $59.67.
- RSI Value: 28.55
- Price Action: Shares of PDD fell 1.6% to close at $124.59 on Friday.
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