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.
ChipMOS TECHNOLOGIES INC. (NASDAQ: IMOS)
- The company reported a decline in quarterly sales. The company's stock has a 52-week low of $17.50 .
- RSI Value: 27.13
- IMOS Price Action: Shares of ChipMOS TECHNOLOGIES fell 0.1% to close at $22.99 on Thursday.
- Jefferies recently downgraded the stock from Buy to Hold and lowered its price target from $5 to $2. It has a 52-week low of $0.97.
- RSI Value: 27.45
- CAMP Price Action: Shares of CalAmp fell 1% to close at $1.03 on Thursday.
- Methode Electronics reported mixed fourth-quarter results. President and Chief Executive Officer Donald W. Duda said, "Methode had strong sales in the quarter led by our lighting and power distribution solutions, and our EV application sales set another record. Material cost inflation continues to significantly challenge our margins, but we were still able to deliver strong free cash flow." The company's stock has a 52-week low of $32.25.
- RSI Value: 27.41
- MEI Price Action: Shares of Methode Electronics fell 1.4% to close at $32.85 on Thursday.
- OSI Systems received $12 million service order for advanced security inspection systems. OSI Systems' Chairman and CEO, Deepak Chopra, said, "We take great pride in offering comprehensive services for our leading RTT checked baggage screening solution, which has achieved widespread deployment at major international airports in Europe and other international regions. Through our global services team, we partner with airports to support efficient and effective security measures for air passenger safety." The company's 52-week low is $69.31.
- RSI Value: 29.51
- OSIS Price Action: Shares of OSI Systems fell 1.6% to close at $113.65 on Thursday.
- Richardson Electronics recently introduced new patent pending hybrid ultracapacitor UPS system for wind turbines and other power management systems. The company has a 52-week low of $13.72.
- RSI Value: 28.71
- RELL Price Action: Shares of Richardson Electronics fell 2.1% to close at $15.46 on Thursday.