Opportunities arise in the communication services sector as oversold stocks beckon savvy investors looking to snap up undervalued companies.
RSI, a vital momentum indicator, gauges a stock’s strength across price movements. A glance at this metric offers traders a glimpse into how a stock might fare in the short run. Assets often tip into oversold territory when the RSI dips below 30.
Here is a current roundup of noteworthy oversold contenders in this sector sporting an RSI around or below 30.
Walt Disney Co DIS
- On July 22, regulatory hurdles from India voiced concerns about Disney’s colossal $8.5 billion merger with Reliance Industries. The House of Mouse saw its stock plummet roughly 11% in the past month, hitting a 52-week low of $78.73.
- RSI Value: 20.76
- DIS Price Action: Disney shares slid 3.4% to close at $90.94 on Tuesday.
- Benzinga Pro’s real-time newsfeed delivered the freshest on Disney’s developments.
IQIYI Inc – ADR IQ
- On July 23, HSBC’s Charlene Liu threw iQIYI a curveball by downgrading the stock from Hold to Reduce. The price target was also slashed from $4.7 to $3. iQIYI’s shares nosedived about 15% over the past five days, hitting a 52-week low of $3.06.
- RSI Value: 26.29
- IQ Price Action: iQIYI shares tumbled 6.5% to close at $3.16 on Tuesday.
- Benzinga Pro’s charting tool expertly traced the trajectory of iQIYI’s stock.
Kanzhun Ltd BZ
- On May 21, Kanzhun celebrated rosy quarterly results. Mr. Jonathan Peng Zhao, the luminary behind Kanzhun, expressed delight at the start of the year, exceeding all financial benchmarks. User base and paid customers witnessed a burgeoning uptick. Kanzhun took a dip of around 22% over the last month, marking a 52-week low of $12.57.
- RSI Value: 24.19
- BZ Price Action: Kanzhun shares inched down by 0.8% to close at $15.93 on Tuesday.
- Benzinga Pro’s signals hinted at a potential breakout in Kanzhun shares.
