The most oversold stocks in the consumer staples 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.
On Aug. 15, Flowers Foods posted downbeat quarterly sales. “Macroeconomic uncertainty and shifting consumer demand have continued to pressure the bread category, but our portfolio strategy has shown promise in offsetting those headwinds,” said Ryals McMullian, chairman and CEO of Flowers Foods. The company’s stock fell around 15% over the past month and has a 52-week low of $13.45.
RSI Value: 23.6
FLO Price Action: Shares of Flowers Foods fell 2% to close at $13.48 on Monday.
Edge Stock Ratings: 8.31 Momentum score with Value at 36.80.
On Aug. 22, Citigroup analyst Paul Lejuez maintained Target with a Neutral and raised the price target from $94 to $100. The company’s stock fell around 16% over the past month and has a 52-week low of $87.35.
RSI Value: 27.4
TGT Price Action: Shares of Target fell 1.6% to close at $88.56 on Monday.
Benzinga Pro’s charting tool helped identify the trend in TGT stock.
On Sept. 8, Sprouts Farmers Market signed a 10-year distribution agreement with KeHE, replacing 2018 deal. The company’s stock fell around 11% over the past month and has a 52-week low of $101.80.
RSI Value: 27.6
SFM Ltd Price Action: Shares of Sprouts Farmers Market fell 5.2% to close at $128.88 on Monday.
Benzinga Pro’s signals feature notified of a potential breakout in SFM shares.
Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.
