Benzinga - by Lisa Levin, Benzinga Editor.
The most oversold stocks in the information technology 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.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
BILL Holdings, Inc. (NYSE: BILL)
- BILL reported first-quarter financial results and cut FY24 total revenue guidance. "We delivered strong first quarter results as we executed on our strategy to be the essential financial operations platform for SMBs," said René Lacerte, BILL CEO and Founder. The company’s stock has a 52-week low of $58.15 .
- RSI Value: 24.28
- BILL Price Action: Shares of BILL Holdings fell 8.2% to close at $61.44 on Monday.
- Aehr reported quarterly earnings of 18 cents per share which beat the analyst consensus estimate of 16 cents. "We finished the first quarter with solid revenue and non-GAAP net income, the strongest first quarter in our history, which has historically been our seasonally softest quarter. We are off to a very good start to our fiscal year and are reaffirming our expectation to grow fiscal full year revenue by at least 50% and profit by over 90% year over year," said Gayn Erickson, president and CEO of Aehr Test Systems. It has a 52-week low of $17.05.
- RSI Value: 29.44
- AEHR Price Action: Shares of Aehr Test Systems fell 5.8% to close at $23.07 on Monday.
- Maxeon Solar Technologies lowered its Q3 FY23 guidance. "As disclosed in our last earnings call, our largest US DG customer breached their payment obligations under our current Master Supply Agreement (MSA) and we paused shipments in late July as a result. While this customer has recently made several payments on their outstanding balance and is now close to becoming current, we continue to pause our shipments and engage in good faith towards resolution of certain ongoing claims of breach under the MSA. We do not have visibility into how quickly such resolution can be achieved. It is our position that we have firm quantity and pricing contracts in place," said Bill Mulligan, CEO. The company’s stock has a 52-week low of $5.70.
- RSI Value: 27.44
- MAXN Price Action: Shares of Maxeon Solar fell 5.1% to close at $5.97 on Monday.
- SolarEdge Technologies reported a year-over-year decrease in third-quarter adjusted EPS. "The results for the third quarter fell short of our prior expectations and are reflecting a slow market environment, which has resulted in high inventory of our products in the distribution channels, in particular in Europe," said Zvi Lando, Chief Executive Officer of SolarEdge. The company’s 52-week low is $63.25.
- RSI Value: 28.60
- SEDG Price Action: Shares of SolarEdge Technologies fell 5.1% to close at $71.77 on Monday.
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