The most oversold stocks in the materials 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.
Mativ Holdings Inc MATV
- On Nov. 6, Mativ Holdings reported worse-than-expected third-quarter financial results. Chief Executive Officer Julie Schertell commented, “We saw meaningful increases in volume and profitability in Filtration and our overall SAS segment during the third quarter, with SAS segment adjusted EBITDA increasing almost 20% year over year. This was somewhat offset by results in Advanced Films, which were impacted by automotive and construction end markets.” The company’s stock fell around 12% over the past five days and has a 52-week low of $10.78.
- RSI Value: 22.81
- MATV Price Action: Shares of Mativ dipped 21.1% to close at $13.73 on Thursday.
- Benzinga Pro’s real-time newsfeed alerted to latest MATV news.
Celanese Corporation CE
- On Nov, 4, Celanese reported worse-than-expected third-quarter financial results and announced it intends to temporarily reduce its quarterly dividend. “In the third quarter, we faced a severely constrained demand environment that, in some cases like auto, degraded swiftly. I want to thank our teams for executing our value enhancing initiatives that are delivering improvements today while also laying the foundation for future growth,” said Lori Ryerkerk, chair and chief executive officer. The company’s stock fell around 29% over the past five days and has a 52-week low of $89.12.
- RSI Value: 14.38
- CE Price Action: Shares of Celanese fell 2.9% to close at $89.72 on Thursday.
- Benzinga Pro’s charting tool helped identify the trend in CE stock.
Companies ride the wave of AI for enhanced efficiency and superior quality, a groundbreaking ISG Provider Lens™ report highlights
Amidst the rapid evolution of artificial intelligence and cloud technologies, U.S. enterprises have undergone a metamorphosis in their approach to application development and management (ADM) strategies as per the latest research published by Information Services Group (ISG) III, a prominent global technology research and advisory firm.
Entrenched in a quest for cost optimization, U.S. companies have embraced AI technologies throughout the lifecycles of applications, catapulting the adoption of generative AI (GenAI) in early developmental stages, asserts the 2024 ISG Provider Lens™ Next-Gen ADM Services report for the U.S.
Leveraging AI tools has led to the automation of ADM tasks, resulting in enhanced software quality, minimized downtime, and boosted efficiency, as outlined in the report. This automation journey contributes to heightened developer productivity, reduced time to market, and proactive maintenance practices.
Prioritizing quality assurance, U.S. enterprises are exploring GenAI's potential applications in this realm. By automating test creation and scenario simulation, GenAI accelerates testing processes, uncovering discrepancies that might elude manual inspections. Companies tread cautiously, endeavoring to embed quality assurance mechanisms in GenAI to ensure ethical and optimal functionality.
A notable trend sees an increasing number of U.S. enterprises consolidating applications and underlying IT infrastructure engagements, enwrapping servers, networks, and cloud services, heralding optimized performance, scalability, security, and cost-efficiency, discloses the report.
Enterprises are gravitating towards major public cloud platforms for robust, scalable, and flexible applications, facilitated by orchestration tools like Kubernetes, microservices architectures, containerization, and DevOps methodologies. This strategic shift to the cloud harmonizes with market dynamics, enabling enterprises to pivot swiftly in response to evolving customer needs.
Fusion of site reliability engineering (SRE) with AI for IT operations (AIOps) heralds a new epoch in ADM operations, affirms the report. This blend harnesses machine learning and advanced analytics to navigate vast operational datasets, empowering companies with holistic insights into system performance and the ability to preemptively address potential glitches for seamless service delivery.
The report delves into additional ADM trends in the U.S., spotlighting providers' adeptness in catering to industry-specific demands, and the ascendancy of Agile and DevOps practices in continuous testing services, underpinning a narrative of ongoing evolution and adaptability in the technology sphere.
Ashland Inc ASH
- On Nov. 6, Ashland reported worse-than-expected fourth-quarter financial results and issued FY25 revenue guidance below estimates. “Customer demand was generally consistent with our expectations in the fourth quarter and all business units delivered organic sales volume growth,” said Guillermo Novo, chair and chief executive officer, Ashland. The company’s stock fell around 5% over the past five days and has a 52-week low of $71.55.
- RSI Value: 25.90
- ASH Price Action: Shares of Ashland fell 7.6% to close at $80.70 on Thursday.
- Benzinga Pro’s signals feature notified of a potential breakout in ASH shares.
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