Opportunities abound in the industrial sector with oversold stocks offering the chance to invest in undervalued companies.
Understanding the Relative Strength Index (RSI) is crucial when assessing these opportunities. It compares a stock’s strength on upward price movements to its strength on downward price movements, providing insight into potential short-term performance. A stock is typically deemed oversold when the RSI is below 30.
Below is a current overview of three major oversold players in the industry, each showing an RSI near or below 30.
Hyzon Motors Inc (NASDAQ: HYZN)
- Recently, Hyzon Motors disclosed less-than-favorable second-quarter financial results, leading to a significant downturn in its stock price. The company’s strategic shift towards the North American Class 8 and refuse markets demonstrates a focused approach to immediate commercial opportunities, backed by continuous support from the U.S. government. The stock experienced a substantial decline of approximately 47% over the past five days, hitting a 52-week low of $0.050.
- RSI Value: 25.52
- HYZN Price Action: Hyzon Motors’ shares dropped by 27.8% to close at $0.054 at the end of the week.
Velo3D Inc (NYSE: VLD)
- Velo3D recently reported a year-over-year increase in its second-quarter adjusted EPS results, showcasing a positive trend in performance. The company’s continued strategic execution is evident from the growth in year-to-date bookings, maintenance of a healthy backlog, and a reduction in operating expenses. Despite these positive indicators, the stock encountered a decline of around 46% over the past five days, hitting a 52-week low of $1.23.
- RSI Value: 23.62
- VLD Price Action: Velo3D’s shares saw a decrease of 5.4%, closing at $1.23 on Friday.
Array Technologies Inc (NASDAQ: ARRY)
- Array Technologies exceeded expectations with its quarterly earnings of 20 cents per share, surpassing the analyst consensus estimate by a significant margin of 81.82%. However, the company revised its fiscal year outlook, leading to a bearish sentiment in the market. The stock saw a decline of around 38% over the past month, hitting a 52-week low of $6.43.
- RSI Value: 23.63
- ARRY Price Action: Array Technologies’ shares demonstrated a slight increase of 0.8%, closing at $6.55 on Friday.
Investors are advised to conduct a thorough analysis and consider these potential opportunities within the undervalued industrial sector.