Investors eyeing the utilities sector for hidden gems have a chance to capitalize on undervalued stocks currently in oversold territory.
One key metric to gauge this condition is the Relative Strength Index (RSI), a momentum indicator that compares a stock’s upward and downward movements. An RSI below 30 suggests that an asset might be oversold and potentially due for a rebound.
Let’s explore two prominent players in this space:
VivoPower International PLC (NASDAQ: VVPR)
- VivoPower recently made headlines with its agreement to merge with Future Automotive Solutions and Technologies. Despite this positive development, the company’s stock has dipped approximately 42% in the last month and hit a 52-week low of $1.02.
- RSI Value: 28.40
- Price Action: VivoPower’s stock closed at $1.06 on Friday, reflecting a 7% decline.
Alternus Clean Energy Inc (NASDAQ: ALCE)
- Alternus Clean Energy recently experienced setbacks as it terminated a significant agreement for a portfolio of solar parks. Despite this, the company remains committed to strategic acquisitions and growth opportunities in the renewable energy market. The stock has seen a downturn of about 27% in the past month, hitting a 52-week low of $0.15.
- RSI Value: 25.93
- Price Action: Alternus Clean Energy closed at $0.16 on Friday, registering a 2% decline.
As these utilities stocks navigate turbulent waters, investors are intrigued by the potential for a turnaround given their oversold status. While short-term fluctuations are common, astute investors often seize the opportunity to accumulate shares at a discount in anticipation of future growth.