Connect with us

List of Oversold Stocks to Buy Today

Oversold stocks can be a great opportunity if you buy before a reversal. This list of stocks can be a good starting point for investors.
The post List of Oversold Stocks to Buy Today appeared first on Investment U.

Published

3 years ago

on

Oversold stocks can be a great opportunity to make gains. When you buy an oversold stock, you might be investing in a well-known company. It might have a temporary mar on its name, or something similar.

Sometimes investors will run from a company. This might be because of a recent event, bad news with the company or a low outlook for the industry. Investors see that and there is some major selling. This large amount of selling can send the stock price tumbling.

When investors sell so much stock that the price falls below its actual value, it has become oversold. This can happen when the market overreacts to a piece of information.

When a stock becomes oversold, though, it’s a good thing for new investors. You can buy the stock, and sometimes see quick returns as it rebounds.

Usually, an RSI below 30% indicates an oversold stock. It also presents a possible opportunity for making gains.

RSI stands for Relative Strength Index. In the following oversold stocks, I’ll add the RSI for each one. And check out this list of technical indicators for more insight.

When buying oversold stocks, it is still important to do your research. You want to make sure the company is well-known and still in good shape. You want to make sure it can recover. And the faster, the better.

Find out why the stock has gone down, why it’s being oversold. Then judge whether that will have a long-term effect on the company’s stock.

Long-term negative effects = bad for your gains

Sometimes, buying an oversold stock does not lead to returns. Sometimes they keep falling and the investor loses their capital.

So, it’s important to do due diligence. Make sure the business knows what it’s doing, and the dip is temporary.

Oversold Stocks to Buy

  1. Berkshire Hathaway (NYSE: BRK.B)
  2. Capital One Financial (NYSE: COF)
  3. FedEx (NYSE: FDX)
  4. Target (NYSE: TGT)
  5. Union Pacific (NYSE: UNP)
  6. 3M (NYSE: MMM)

Why Buy These Oversold Stocks?

Berkshire Hathaway Class B

Warren Buffet owns Berkshire. It’s a holding company comprised of various other companies or pieces of companies it owns. Investors know Warren Buffett and Berkshire for its ability to succeed long-term. Here are some of the top Warren Buffett Quotes.

One possible reason Berkshire might be down right now is that it scores low on environmental, social and governance factors (ESG). More funds are leaning into ESG when picking which investments to include in their portfolios.

Although, Berkshire’s strategy might change a little with new management. Buffet has chosen a successor for the company. Once that shift happens, it’s expected that the new owner will fix those issues. Then the company will be open to more investors with a lot of money.

Berkshire is split into two Classes: A and B. Berkshire B could be one oversold stock that gives some great returns. As of early September, its 14-day RSI was around 24%.

Capital One Financial

Capital One stock has been going strong since 1995. Plus, buying this stock will get you dividends! It’s been regularly giving dividends and long-term investors have collected a lot of income.

The share price is in a long-term uptrend but has. recently pulled back. And that might be good for investors to buy in.

COVID-19 created an economic slowdown, and Capital One felt it. Since they are a financial services company, this is only natural. People stopped spending so much because they didn’t have as much income flowing in. So naturally, parts of the financial services industry took a hit.

As of early September, Capital One’s 14-day RSI was at 26%. So Capital One isn’t a dramatically oversold stock, but it could still give you a good return on investment (ROI). Here’s a free ROI calculator to test out potential returns.

FedEx

If you don’t know, FedEx is a delivery and shipping service company. It’s seen a large bump in price after the pandemic. This is because stock went very low during the pandemic. Investors bought, and then the price surged with so many people buying.

FedEx stock has been dropping, but nobody is sure why. It could be several reasons. Even so, its long-term outlook is positive. Plus, there is talk of FedEx soon using drones for delivery.

As of early September, FedEx’s 14-day RSI is at 21%. This is easily one of the most oversold stocks that might be worth buying.

Target

Target thrived during the pandemic. Its prices brought in many consumers from its competitors. Target’s stock suffered a deep bear when the pandemic began in March 2020. Since then, though, the stock climbed quickly to reach an all-time high at the beginning of August 2021.

Although, in the past month, there’s been a decline. It could be a correction from the dramatic bull and more than likely it’s temporary. Target has been in the market a long time. It’s very unlikely a dip like this is going to put it out of business.

The decline could be from its lack of workers. Just a theory. And as of early September, Target’s 14-day RSI was around 24%.

Union Pacific

Union Pacific has had its share of stock peaks and falls. The most recent happened at the beginning of the pandemic. Since then, it’s been chugging upwards. It has fallen in the short-term, and this could be a great buying opportunity.

This is one company that has been in the market for decades. And despite growing environmental worries, I don’t think it’s going anywhere for a long time, either.

As of early September, Union Pacific’s 14-day RSI was around 8%. This is one stock that is very oversold. This could be a huge money maker. Do your homework and consider buying this oversold stock.

3M Company

3M has recently had lawsuits in 2020 over safety of some products. One of them was military earplugs. There were many lawsuits over the earplugs, and in May, 3M won a case. Many people accused it of covering up design flaws in the earplugs.

The other large issue was environmental concerns of the manufacturing plants. 2020 saw a sag in price and investors shied away because of these lawsuits.

Things are looking much better for 3M. Its revenues have bounced back. More than likely, the environmental issues will resolve also. As of early September, 3M’s 14-day RSI was around 26%.

Oversold Stocks and Other Investing Opportunities

Oversold stocks need to be thoroughly researched before you put money in. There is a reason they are oversold. But if the company is likely to rebound quickly from it, putting some cash into the stock could bring you a great ROI. Here are some other investing opportunities as well…

For the most up-to-date opportunities, sign up for Trade of the Day. It’s a free e-letter that’s packed with investing tips and tricks. You’ll hear directly from some of the best trading experts around.

The post List of Oversold Stocks to Buy Today appeared first on Investment U.

Read More

Related Topics:
Continue Reading

Uncategorized

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked…

Published

27 mins ago

on

March 11, 2024

By

NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism

One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%. 

The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.

Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.

We find the rent expectations surprising because it is happening just asking rents are rising across the country.

At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.

Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."

Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.

Turning to household finance, we find the following:

  • The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
  • Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
  • Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
  • The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
  • Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
  • The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
  • At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."

Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months

Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.

Tyler Durden Mon, 03/11/2024 - 12:40

Read More

Continue Reading

Spread & Containment

A major cruise line is testing a monthly subscription service

The Cruise Scarlet Summer Season Pass was designed with remote workers in mind.

Published

28 mins ago

on

March 11, 2024

By

While going on a cruise once meant disconnecting from the world when between ports because any WiFi available aboard was glitchy and expensive, advances in technology over the last decade have enabled millions to not only stay in touch with home but even work remotely.

With such remote workers and digital nomads in mind, Virgin Voyages has designed a monthly pass that gives those who want to work from the seas a WFH setup on its Scarlet Lady ship — while the latter acronym usually means "work from home," the cruise line is advertising as "work from the helm.”

Related: Royal Caribbean shares a warning with passengers

"Inspired by Richard Branson's belief and track record that brilliant work is best paired with a hearty dose of fun, we're welcoming Sailors on board Scarlet Lady for a full month to help them achieve that perfect work-life balance," Virgin Voyages said in announcing its new promotion. "Take a vacation away from your monotonous work-from-home set up (sorry, but…not sorry) and start taking calls from your private balcony overlooking the Mediterranean sea."

A man looks through his phone while sitting in a hot tub on a cruise ship.

Shutterstock

This is how much it'll cost you to work from a cruise ship for a month

While the single most important feature for successful work at sea — WiFi — is already available for free on Virgin cruises, the new Scarlet Summer Season Pass includes a faster connection, a $10 daily coffee credit, access to a private rooftop, and other member-only areas as well as wash and fold laundry service that Virgin advertises as a perk that will allow one to concentrate on work

More Travel:

The pass starts at $9,990 for a two-guest cabin and is available for four monthlong cruises departing in June, July, August, and September — each departs from ports such as Barcelona, Marseille, and Palma de Mallorca and spends four weeks touring around the Mediterranean.

Longer cruises are becoming more common, here's why

The new pass is essentially a version of an upgraded cruise package with additional perks but is specifically tailored to those who plan on working from the ship as an opportunity to market to them.

"Stay connected to your work with the fastest at-sea internet in the biz when you want and log-off to let the exquisite landscape of the Mediterranean inspire you when you need," reads the promotional material for the pass.

Amid the rise of remote work post-pandemic, cruise lines have been seeing growing interest in longer journeys in which many of the passengers not just vacation in the traditional sense but work from a mobile office.

In 2023, Turkish cruise line operator Miray even started selling cabins on a three-year tour around the world but the endeavor hit the rocks after one of the engineers declared the MV Gemini ship the company planned to use for the journey "unseaworthy" and the cruise ship line dealt with a PR scandal that ultimately sank the project before it could take off.

While three years at sea would have set a record as the longest cruise journey on the market, companies such as Royal Caribbean  (RCL) (both with its namesake brand and its Celebrity Cruises line) have been offering increasingly long cruises that serve as many people’s temporary homes and cross through multiple continents.

Read More

Continue Reading

International

This is the biggest money mistake you’re making during travel

A retail expert talks of some common money mistakes travelers make on their trips.

Published

28 mins ago

on

March 11, 2024

By

Travel is expensive. Despite the explosion of travel demand in the two years since the world opened up from the pandemic, survey after survey shows that financial reasons are the biggest factor keeping some from taking their desired trips.

Airfare, accommodation as well as food and entertainment during the trip have all outpaced inflation over the last four years.

Related: This is why we're still spending an insane amount of money on travel

But while there are multiple tricks and “travel hacks” for finding cheaper plane tickets and accommodation, the biggest financial mistake that leads to blown travel budgets is much smaller and more insidious.

A traveler watches a plane takeoff at an airport gate.

Jeshoots on Unsplash

This is what you should (and shouldn’t) spend your money on while abroad

“When it comes to traveling, it's hard to resist buying items so you can have a piece of that memory at home,” Kristen Gall, a retail expert who heads the financial planning section at points-back platform Rakuten, told Travel + Leisure in an interview. “However, it's important to remember that you don't need every souvenir that catches your eye.”

More Travel:

According to Gall, souvenirs not only have a tendency to add up in price but also weight which can in turn require one to pay for extra weight or even another suitcase at the airport — over the last two months, airlines like Delta  (DAL) , American Airlines  (AAL)  and JetBlue Airways  (JBLU)  have all followed each other in increasing baggage prices to in some cases as much as $60 for a first bag and $100 for a second one.

While such extras may not seem like a lot compared to the thousands one might have spent on the hotel and ticket, they all have what is sometimes known as a “coffee” or “takeout effect” in which small expenses can lead one to overspend by a large amount.

‘Save up for one special thing rather than a bunch of trinkets…’

“When traveling abroad, I recommend only purchasing items that you can't get back at home, or that are small enough to not impact your luggage weight,” Gall said. “If you’re set on bringing home a souvenir, save up for one special thing, rather than wasting your money on a bunch of trinkets you may not think twice about once you return home.”

Along with the immediate costs, there is also the risk of purchasing things that go to waste when returning home from an international vacation. Alcohol is subject to airlines’ liquid rules while certain types of foods, particularly meat and other animal products, can be confiscated by customs. 

While one incident of losing an expensive bottle of liquor or cheese brought back from a country like France will often make travelers forever careful, those who travel internationally less frequently will often be unaware of specific rules and be forced to part with something they spent money on at the airport.

“It's important to keep in mind that you're going to have to travel back with everything you purchased,” Gall continued. “[…] Be careful when buying food or wine, as it may not make it through customs. Foods like chocolate are typically fine, but items like meat and produce are likely prohibited to come back into the country.

Related: Veteran fund manager picks favorite stocks for 2024

Read More

Continue Reading

Trending