Seizing the opportunity to revive the downtrodden, undervalued entities within the information technology sphere can be a strategic maneuver for investors.
One such indicator shedding light on the undervaluation of stocks is the Relative Strength Index (RSI), a momentum gauge comparing a stock’s strength on days of price upswings against downtrends. Breaching the RSI threshold of 30 signifies an oversold realm, reports Benzinga Pro.
Spotlighting the major players currently residing in the oversold territory, showcasing RSI near or below the key level of 30:
indie Semiconductor Inc INDI
- Recent hiccups marked by indie Semiconductor reporting subpar second-quarter financial performance highlighted the company’s resilience amidst challenging automotive market circumstances. The stock plummeted by approximately 37% over the preceding month, bottoming out at $3.79.
- RSI Value: 28.53
- INDI Price Action: Recording a 5.6% decline, indie Semiconductor shares concluded at $3.89 on Wednesday.
Ouster Inc OUST
- August 13 witnessed Ouster unveiling second-quarter sales figures falling short of expectations, coupled with third-quarter revenue projections below estimates. CEO Angus Pacala extolled their strategic approach and resilient business models amid challenging circumstances. Ouster shares nosedived by approximately 46% within the prior month, stooping to a 52-week low of $3.67.
- RSI Value: 25.49
- OUST Price Action: Ouster’s stock witnessed a 3.3% dip to wrap up at $7.24 on Wednesday.
Super Micro Computer Inc SMCI
- Triggered by a critical report from Hindenburg Research on August 27, Super Micro Computer saw its shares plummet by a startling 36% in the bygone month, hitting a 52-week low of $226.59.
- RSI Value: 25.38
- SMCI Price Action: The carnage continued as Super Micro Computer’s stocks tumbled by 19% to culminate at $443.49 on Wednesday.
Carving a path to revival, these undervalued tech stocks await redemption, offering potential opportunities for astute investors to sow the seeds of growth amidst a landscape marred by uncertainty and unpredictability.