The most oversold stocks in the utilities sector presents an opportunity to buy into undervalued companies.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
PNM Resources, Inc. (NYSE:PNM)
- On Jan. 2, Avangrid, a member of the Iberdrola S.A. Group, terminated the merger agreement with PNM Resources, as all final regulatory approvals were not received by Dec. 31, 2023. “We are greatly disappointed with Avangrid’s decision to terminate the merger agreement and its proposed benefits to our customers, communities and shareholders,” said Pat Vincent-Collawn, PNM Resources Chairman and CEO. The company’s stock fell around 6% over the past five days and has a 52-week low of $38.53 .
- RSI Value: 26.49
- PNM Price Action: Shares of PNM Resources fell 0.8% to close at $39.09 on Thursday.
Middlesex Water Company (NASDAQ:MSEX)
- On Nov. 9, Middlesex Water posted a decline in third-quarter sales. Middlesex Chairman, President and Chief Executive Officer Dennis W. Doll said, “We continue to view the calendar year 2023 as a period of significant transition as we execute our succession plans, manage rate filing proceedings currently in progress and responsibly manage our resources.” The company’s stock fell around 8% over the past five days. It has a 52-week low of $61.34.
- RSI Value: 29.85
- MSEX Price Action: Shares of Middlesex Water fell 1.6% to close at $61.96 on Thursday.
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