The most oversold stocks in the materials 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.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
Origin Materials, Inc. (NASDAQ:ORGN)
- The company recently announced the appointment of a new CFO. The company’s stock has a 52-week low of $0.86 .
- RSI Value: 24.63
- ORGN Price Action: Shares of Origin Materials gained 8.9% to close at $0.9682 on Tuesday.
O-I Glass, Inc. (NYSE:OI)
- O-I Glass posted better-than-expected second-quarter results. “We are pleased to report strong second quarter performance, which exceeded guidance, as O-I continued to execute well amid more challenging macro conditions,” said Andres Lopez, O-I Glass CEO. It has a 52-week low of $14.04.
- RSI Value: 25.32
- OI Price Action: Shares of O-I Glass rose 0.1% to close at $15.73 on Tuesday.
Stepan Company (NYSE:SCL)
- Stepan posted downbeat quarterly results. “Looking forward, we continue to believe second half of the year volume and margins will incrementally improve versus the first half of 2023, driven by the continued gradual recovery in Rigid Polyol demand, growth in Surfactant volumes associated with new contracted business and sequentially lower raw material costs,” said Scott Behrens, President and Chief Executive Officer. The company’s stock has a 52-week low of $67.82.
- RSI Value: 22.26
- SCL Price Action: Shares of Stepan gained 0.4% to close at $68.21 on Tuesday.
Perimeter Solutions, SA (NYSE:PRM)
- Perlimeter Solutions reported better-than-expected second-quarter financial results. CEO Haitham Khouri commented, “Our key end-markets, in both our Fire Safety and Specialty Products businesses, were slow in the second quarter. Both our businesses significantly outperformed their end-markets, however, due primarily to successful implementation of our value-driver initiatives.” The company’s 52-week low is $3.6750.
- RSI Value: 20.48
- PRM Price Action: Shares of Perimeter Solutions gained 2.1% to close at $3.87 on Tuesday.
Sensient Technologies Corporation (NYSE:SXT)
- Sensient Technologies is expected to report third quarter results on Oct. 20, 2023. The company has a 52-week low of $55.61.
- RSI Value: 28.53
- SXT Price Action: Shares of Sensient Technologies gained 1% to close at $56.27 on Tuesday.
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