When the stock market offers a buying opportunity, investors are quick to capitalize on undervalued companies in the consumer discretionary sector.
One such indicator is the RSI, a gauge of momentum that reveals a stock’s strength on positive versus negative price days, offering insight into short-term performance. An RSI below 30 typically indicates that an asset is oversold, signaling a potential upward trajectory.
Let’s delve into the recent standout performers within the consumer sector boasting RSIs near or below 30.
Topgolf Callaway Brands Corp MODG
- Despite Topgolf Callaway Brands’ recent struggles with second-quarter revenue and softer third-quarter guidance, the company’s President and CEO, Chip Brewer, expressed confidence in their strategic advancements. The stock stumbled by approximately 27% in the last month, hitting a 52-week low of $9.84.
- RSI Value: 29.11
- MODG Price Action: The stock closed at $11.38 on Thursday after a 2.5% decline.
Red Robin Gourmet Burgers Inc RRGB
- Red Robin faced disappointing second-quarter earnings and revised fiscal year revenue projections, citing industry-wide challenges. G.J. Hart, the company’s President and CEO, highlighted ongoing progress amidst industry headwinds. Shares tumbled by about 22% over the past month, reaching a 52-week low of $4.50.
- RSI Value: 26.81
- RRGB Price Action: Closing at $4.73 on Thursday, the stock saw a 6.3% decline.
Genius Group Ltd GNS
- Following a reverse stock split announcement in mid-August, Genius Group witnessed a significant dip of 32% in the past five days, hitting a 52-week low of $1.03.
- RSI Value: 25.58
- GNS Price Action: Closing at $1.07 on Thursday, the stock experienced a 12.3% decrease.
These precipitous movements spark curiosity among investors, hinting at potential buying opportunities in undervalued consumer stocks. As the market ebbs and flows, seizing the moment to invest in oversold assets may yield lucrative returns in the long run.