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3 Oversold Tech Stocks Worth Watching This Quarter

MarketDash Editorial Team
1 day ago
These beaten-down technology stocks are showing RSI readings near or below 30, signaling potential buying opportunities. From semiconductor giant Arm Holdings to business software veteran BlackBerry, here's what oversold momentum indicators might reveal about short-term price action.

When a stock gets beaten down hard enough, it eventually becomes interesting again. That's the basic premise behind looking at oversold stocks in the technology sector, where some significant names have taken a bruising lately and are now flashing momentum indicators that suggest they might be due for a bounce.

The Relative Strength Index, or RSI, is a momentum tool that measures how a stock performs on up days versus down days. Think of it as a temperature check for market sentiment. When the RSI drops below 30, the conventional wisdom says a stock is oversold and potentially ready to rebound. It's not a crystal ball, but it gives traders a framework for spotting potential opportunities in the wreckage.

Here are three technology stocks currently sporting RSI readings that suggest the selling might have gotten overdone.

Arm Holdings Feels the Heat

Arm Holdings PLC (ARM) has had a rough go of it lately. The semiconductor and software design company saw its stock tumble about 15% over the past month, landing it uncomfortably close to its 52-week low of $80.00. The pain intensified on December 15 when Goldman Sachs analyst James Schneider downgraded the stock from Neutral all the way to Sell, slashing the price target from $160 to $120 in the process.

That's not exactly a vote of confidence, and the market responded accordingly. Still, Arm Holdings managed to eke out a 0.5% gain on Friday, closing at $114.03. The company's current RSI sits at 27.3, firmly in oversold territory. For context, the stock carries a momentum score of 16.74 with a value rating of 4.20, suggesting the recent weakness might have created an entry point for contrarian investors willing to bet on a reversal.

Crane NXT Gets Knocked Down

Crane NXT Co (CXT) is another casualty of recent selling pressure. The company's shares dropped roughly 14% over the past month, though they're still well above the 52-week low of $41.54. On December 15, Baird analyst Michael Halloran maintained his Outperform rating on the stock but trimmed his price target from $88 down to $82.

The company's RSI currently reads 26.7, making it one of the most oversold names in the tech sector right now. Shares climbed 1.3% on Friday to close at $47.20, perhaps reflecting some early bottom-fishing activity. When a stock gets this stretched to the downside on a momentum basis, it often attracts traders looking for a quick reversal trade, even if the fundamental picture remains murky.

BlackBerry's Paradox: Good News, Bad Reaction

BlackBerry Ltd (BB) presents one of those head-scratching situations where good results meet bad market reaction. On December 18, the company reported third-quarter revenue of $141.8 million, beating analyst estimates of $137.4 million. Adjusted earnings came in at 5 cents per share, topping the 4 cents consensus estimate.

CEO John Giamatteo highlighted the achievement: "BlackBerry delivered revenue above the top end of the previously provided guidance range, which, coupled with ongoing cost discipline, helped the company achieve its strongest quarter of GAAP profitability in almost four years, along with increased operating cash flow."

You'd think that would be cause for celebration. Instead, the stock plunged 13% over five days, including a brutal 12.9% drop on Friday alone, closing at $3.77. That's just above the 52-week low of $2.80. The RSI tells the tale: at 24, BlackBerry is the most oversold of this trio, suggesting the selling may have reached an extreme.

What gives? Sometimes the market looks past quarterly beats and focuses on longer-term concerns about growth trajectory or competitive positioning. Or maybe expectations had run ahead of reality. Either way, the technical setup suggests the pendulum might have swung too far in the pessimistic direction.

The Oversold Opportunity

None of this guarantees these stocks will bounce. Oversold can get more oversold, and sometimes there are excellent fundamental reasons why stocks decline sharply. But for traders who understand the risks, deeply oversold readings in the RSI can signal potential entry points where risk-reward ratios start looking more favorable. The key is understanding that momentum indicators like RSI measure sentiment extremes, not intrinsic value. They tell you when the crowd has pushed too hard in one direction, creating conditions where a snap-back becomes more likely.

Whether these three tech stocks represent genuine opportunities or falling knives depends on your time horizon and risk tolerance. But one thing's clear: they've all taken enough of a beating that the technical indicators are flashing warning signs about potential reversals ahead.

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3 Oversold Tech Stocks Worth Watching This Quarter

MarketDash Editorial Team
1 day ago
These beaten-down technology stocks are showing RSI readings near or below 30, signaling potential buying opportunities. From semiconductor giant Arm Holdings to business software veteran BlackBerry, here's what oversold momentum indicators might reveal about short-term price action.

When a stock gets beaten down hard enough, it eventually becomes interesting again. That's the basic premise behind looking at oversold stocks in the technology sector, where some significant names have taken a bruising lately and are now flashing momentum indicators that suggest they might be due for a bounce.

The Relative Strength Index, or RSI, is a momentum tool that measures how a stock performs on up days versus down days. Think of it as a temperature check for market sentiment. When the RSI drops below 30, the conventional wisdom says a stock is oversold and potentially ready to rebound. It's not a crystal ball, but it gives traders a framework for spotting potential opportunities in the wreckage.

Here are three technology stocks currently sporting RSI readings that suggest the selling might have gotten overdone.

Arm Holdings Feels the Heat

Arm Holdings PLC (ARM) has had a rough go of it lately. The semiconductor and software design company saw its stock tumble about 15% over the past month, landing it uncomfortably close to its 52-week low of $80.00. The pain intensified on December 15 when Goldman Sachs analyst James Schneider downgraded the stock from Neutral all the way to Sell, slashing the price target from $160 to $120 in the process.

That's not exactly a vote of confidence, and the market responded accordingly. Still, Arm Holdings managed to eke out a 0.5% gain on Friday, closing at $114.03. The company's current RSI sits at 27.3, firmly in oversold territory. For context, the stock carries a momentum score of 16.74 with a value rating of 4.20, suggesting the recent weakness might have created an entry point for contrarian investors willing to bet on a reversal.

Crane NXT Gets Knocked Down

Crane NXT Co (CXT) is another casualty of recent selling pressure. The company's shares dropped roughly 14% over the past month, though they're still well above the 52-week low of $41.54. On December 15, Baird analyst Michael Halloran maintained his Outperform rating on the stock but trimmed his price target from $88 down to $82.

The company's RSI currently reads 26.7, making it one of the most oversold names in the tech sector right now. Shares climbed 1.3% on Friday to close at $47.20, perhaps reflecting some early bottom-fishing activity. When a stock gets this stretched to the downside on a momentum basis, it often attracts traders looking for a quick reversal trade, even if the fundamental picture remains murky.

BlackBerry's Paradox: Good News, Bad Reaction

BlackBerry Ltd (BB) presents one of those head-scratching situations where good results meet bad market reaction. On December 18, the company reported third-quarter revenue of $141.8 million, beating analyst estimates of $137.4 million. Adjusted earnings came in at 5 cents per share, topping the 4 cents consensus estimate.

CEO John Giamatteo highlighted the achievement: "BlackBerry delivered revenue above the top end of the previously provided guidance range, which, coupled with ongoing cost discipline, helped the company achieve its strongest quarter of GAAP profitability in almost four years, along with increased operating cash flow."

You'd think that would be cause for celebration. Instead, the stock plunged 13% over five days, including a brutal 12.9% drop on Friday alone, closing at $3.77. That's just above the 52-week low of $2.80. The RSI tells the tale: at 24, BlackBerry is the most oversold of this trio, suggesting the selling may have reached an extreme.

What gives? Sometimes the market looks past quarterly beats and focuses on longer-term concerns about growth trajectory or competitive positioning. Or maybe expectations had run ahead of reality. Either way, the technical setup suggests the pendulum might have swung too far in the pessimistic direction.

The Oversold Opportunity

None of this guarantees these stocks will bounce. Oversold can get more oversold, and sometimes there are excellent fundamental reasons why stocks decline sharply. But for traders who understand the risks, deeply oversold readings in the RSI can signal potential entry points where risk-reward ratios start looking more favorable. The key is understanding that momentum indicators like RSI measure sentiment extremes, not intrinsic value. They tell you when the crowd has pushed too hard in one direction, creating conditions where a snap-back becomes more likely.

Whether these three tech stocks represent genuine opportunities or falling knives depends on your time horizon and risk tolerance. But one thing's clear: they've all taken enough of a beating that the technical indicators are flashing warning signs about potential reversals ahead.