Marketdash
Back to News

Three Oversold Materials Stocks Worth Watching in Q4

MarketDash Editorial Team
17 days ago
When stocks in the materials sector get beaten down, they often present buying opportunities for value-focused investors. These three companies are showing RSI levels below 30, traditionally considered oversold territory, and each has its own story to tell about recent challenges and potential rebounds.

When materials stocks get oversold, it can signal opportunity for investors willing to take a contrarian position. The challenge, of course, is distinguishing between "temporarily beaten down" and "there's probably a good reason for this." Let's look at three companies in the materials sector that have caught the attention of technical traders.

The Relative Strength Index, or RSI, measures momentum by comparing how a stock performs on up days versus down days. It's a gauge of whether a stock might be overbought or oversold in the short term. The magic number here is 30—when a stock's RSI drops below that threshold, it's traditionally considered oversold. That doesn't guarantee a bounce, but it suggests the selling pressure might be getting exhausted.

Here are three materials sector players currently flashing oversold signals, each with RSI readings at or below 30.

TriMas Corp (TRS)

TriMas Corp (TRS) has had a rough month, with shares dropping roughly 17%. The stock is now hovering not too far above its 52-week low of $19.33. But here's an interesting twist: on November 14, the company increased its share repurchase authorization to $150 million. That's management putting money where their mouth is, signaling confidence that the current price represents value.

The company's RSI currently sits at 29.9—just barely in oversold territory. Shares closed at $31.77 on Thursday, down 1.1% for the day. From a technical perspective, TriMas shows a momentum score of 77.67, though its value score of 50.10 suggests it's not screaming cheap on fundamentals alone.

Packaging Corp of America (PKG)

Packaging Corp of America (PKG) posted disappointing quarterly earnings on October 22, and the stock has shed about 8% over the past month. The company is dealing with what Chairman and CEO Mark W. Kowlzan described as "cautious ordering patterns" in corrugated packaging, though he noted volume did improve throughout the quarter.

The bigger challenge seems to be on the export side. "Export containerboard sales volume remained relatively low with continued trade uncertainty," Kowlzan said. That's corporate-speak for "tariff concerns are making international buyers nervous."

Despite the headwinds, Kowlzan emphasized that "we had a very strong quarter in the legacy PCA packaging business, with corrugated volume continuing to reflect cautious ordering patterns and improving throughout the quarter, with volume and price largely on plan."

Packaging Corp has an RSI of 29.1 and closed Thursday at $191.68, down 1.4%. The stock has a 52-week low of $172.72, so there's still some cushion before it tests recent lows, but the technical indicators suggest selling pressure has been intense.

Graphic Packaging Holding Co (GPK)

Graphic Packaging Holding Co (GPK) has had the toughest month of the three, with shares falling approximately 14%. The company reported better-than-expected third-quarter results on November 4, but then cut its full-year 2025 adjusted earnings guidance below analyst estimates. That combination—beat the quarter, lower the outlook—tends to confuse investors and trigger selling.

President and CEO Michael Doss acknowledged the challenging environment: "Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging." He's optimistic about the future, adding that "as food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent."

Translation: consumers are stretched thin, which means less demand for packaged goods, which means less demand for packaging. But Doss believes this is temporary, and the company's underlying business model remains sound.

Graphic Packaging has the lowest RSI of the bunch at 28.5, suggesting it's the most oversold on a technical basis. Shares closed Thursday at $15.17, down 0.9%, and the stock has a 52-week low of $14.90. At current levels, it's trading just above that floor.

All three companies are dealing with variations on the same theme: weak consumer demand and economic uncertainty. But oversold doesn't mean broken. For investors with a stomach for volatility and a belief that materials demand will rebound as economic conditions improve, these stocks might be worth a closer look. Just remember that oversold stocks can always get more oversold before they bounce.

Back to News

Three Oversold Materials Stocks Worth Watching in Q4

MarketDash Editorial Team
17 days ago
When stocks in the materials sector get beaten down, they often present buying opportunities for value-focused investors. These three companies are showing RSI levels below 30, traditionally considered oversold territory, and each has its own story to tell about recent challenges and potential rebounds.

When materials stocks get oversold, it can signal opportunity for investors willing to take a contrarian position. The challenge, of course, is distinguishing between "temporarily beaten down" and "there's probably a good reason for this." Let's look at three companies in the materials sector that have caught the attention of technical traders.

The Relative Strength Index, or RSI, measures momentum by comparing how a stock performs on up days versus down days. It's a gauge of whether a stock might be overbought or oversold in the short term. The magic number here is 30—when a stock's RSI drops below that threshold, it's traditionally considered oversold. That doesn't guarantee a bounce, but it suggests the selling pressure might be getting exhausted.

Here are three materials sector players currently flashing oversold signals, each with RSI readings at or below 30.

TriMas Corp (TRS)

TriMas Corp (TRS) has had a rough month, with shares dropping roughly 17%. The stock is now hovering not too far above its 52-week low of $19.33. But here's an interesting twist: on November 14, the company increased its share repurchase authorization to $150 million. That's management putting money where their mouth is, signaling confidence that the current price represents value.

The company's RSI currently sits at 29.9—just barely in oversold territory. Shares closed at $31.77 on Thursday, down 1.1% for the day. From a technical perspective, TriMas shows a momentum score of 77.67, though its value score of 50.10 suggests it's not screaming cheap on fundamentals alone.

Packaging Corp of America (PKG)

Packaging Corp of America (PKG) posted disappointing quarterly earnings on October 22, and the stock has shed about 8% over the past month. The company is dealing with what Chairman and CEO Mark W. Kowlzan described as "cautious ordering patterns" in corrugated packaging, though he noted volume did improve throughout the quarter.

The bigger challenge seems to be on the export side. "Export containerboard sales volume remained relatively low with continued trade uncertainty," Kowlzan said. That's corporate-speak for "tariff concerns are making international buyers nervous."

Despite the headwinds, Kowlzan emphasized that "we had a very strong quarter in the legacy PCA packaging business, with corrugated volume continuing to reflect cautious ordering patterns and improving throughout the quarter, with volume and price largely on plan."

Packaging Corp has an RSI of 29.1 and closed Thursday at $191.68, down 1.4%. The stock has a 52-week low of $172.72, so there's still some cushion before it tests recent lows, but the technical indicators suggest selling pressure has been intense.

Graphic Packaging Holding Co (GPK)

Graphic Packaging Holding Co (GPK) has had the toughest month of the three, with shares falling approximately 14%. The company reported better-than-expected third-quarter results on November 4, but then cut its full-year 2025 adjusted earnings guidance below analyst estimates. That combination—beat the quarter, lower the outlook—tends to confuse investors and trigger selling.

President and CEO Michael Doss acknowledged the challenging environment: "Against a backdrop of sluggish consumer volumes, we executed well in the quarter, reduced inventory, and saw our innovation engine open new markets for paperboard packaging." He's optimistic about the future, adding that "as food affordability challenges ease, the full power of our business model and its cash generating potential will become even more apparent."

Translation: consumers are stretched thin, which means less demand for packaged goods, which means less demand for packaging. But Doss believes this is temporary, and the company's underlying business model remains sound.

Graphic Packaging has the lowest RSI of the bunch at 28.5, suggesting it's the most oversold on a technical basis. Shares closed Thursday at $15.17, down 0.9%, and the stock has a 52-week low of $14.90. At current levels, it's trading just above that floor.

All three companies are dealing with variations on the same theme: weak consumer demand and economic uncertainty. But oversold doesn't mean broken. For investors with a stomach for volatility and a belief that materials demand will rebound as economic conditions improve, these stocks might be worth a closer look. Just remember that oversold stocks can always get more oversold before they bounce.