The most oversold stocks in the communication services 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.
AMC Entertainment Holdings Inc AMC
- On Dec. 6, 2024, AMC announced a sales agreement for up to 50 million class A shares of common stock. The company’ stock fell around 19% over the past month and has a 52-week low of $2.38.
- RSI Value: 28.3
- AMC Price Action: Shares of AMC fell 2.7% to close at $3.21 on Wednesday.
- Benzinga Pro’s real-time newsfeed alerted to latest AMC news.
Electronic Arts Inc EA
- On Jan. 22, Electronic Arts reported preliminary financial results for the third quarter. EA said it previously anticipated mid-single-digit growth in live services net bookings, but now projects a mid-single-digit decline largely due to a slowdown in Global Football. The Global Football franchise experienced a slowdown in the quarter as early momentum faded, the company said. Separately, Dragon Age only engaged approximately 1.5 million players during the quarter, about 50% lower than the company’s expectations. The company’s stock fell around 20% over the past month and has a 52-week low of $115.21.
- RSI Value: 17.9
- EA Price Action: Shares of Electronic Arts gained 0.5% to close at $117.10 on Wednesday.
- Benzinga Pro’s charting tool helped identify the trend in EA stock.
Globalstar, Inc. GSAT
- On Jan. 21, Globalstar said it intends to voluntarily delist from NYSE American and transfer to Nasdaq. The company has a 52-week low of $1.00.
- RSI Value: 26
- GSAT Price Action: Shares of Globalstar fell 17.8% to close at $1.57 on Wednesday.
- Benzinga Pro’s signals feature notified of a potential breakout in GSAT shares.
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