The most oversold stocks in the consumer discretionary 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.
Topgolf Callaway Brands Corp (NYSE:MODG)
- On Aug. 7, Topgolf Callaway Brands reported worse-than-expected second-quarter revenue results and issued soft third-quarter revenue guidance. "Despite macro headwinds including the cumulative impact of negative FX trends, persistently high inflation and recent softer-than-expected traffic to our Topgolf venues, I am incredibly proud of our team's ability to drive market share gains in our products business as well as the continued strengthening of the digital capabilities and fundamental venue profitability at Topgolf," commented Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands. The company's stock fell around 27% over the past month and has a 52-week low of $9.84.
- RSI Value: 29.11
- MODG Price Action: Shares of Topgolf Callaway Brands fell 2.5% to close at $11.38 on Thursday.
- Benzinga Pro's real-time newsfeed alerted to latest MODG news.
Red Robin Gourmet Burgers Inc (NASDAQ:RRGB)
- On Aug. 22, Red Robin reported downbeat earnings for its second quarter and lowered its FY24 revenue guidance. G.J. Hart, Red Robin's President and Chief Executive Officer said, "Our results for the second quarter and our reduced guidance for the year are not what we expected when we last communicated in May, with the slowdown experienced in the broader restaurant industry masking the substantial progress we continue to make against our North Star plan." The company's stock fell around 22% over the past month. It has a 52-week low of $4.50
- RSI Value: 26.81
- RRGB Price Action: Shares of Red Robin fell 6.3% to close at $4.73 on Thursday.
- Benzinga Pro's charting tool helped identify the trend in RRGB stock.
Genius Group Ltd (NYSE:GNS)
- Genius Group announced a reverse stock split effective on Aug. 16. The company's shares fell around 32% over the past five days and has a 52-week low of $1.03.
- RSI Value: 25.58
- GNS Price Action: Shares of Genius Group fell 12.3% to close at $1.07 on Thursday.
- Benzinga Pro's signals feature notified of a potential breakout in GNS shares.
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