Marketdash
Back to Stock Market News

Two Oversold Utilities Stocks Worth Watching This Month

MarketDash Editorial Team
4 hours ago
When stocks in the utilities sector get hammered hard enough, they sometimes present compelling value opportunities. Here are two names with RSI readings below 30 that might be worth a closer look for contrarian investors.

When everyone's running away from a stock, sometimes that's your signal to take a closer look. The most oversold names in the utilities sector can offer an entry point into companies trading below their typical valuation levels.

The Relative Strength Index is a momentum indicator that measures how a stock performs on up days versus down days. It's basically a way to gauge whether something has been beaten down too hard, too fast. When the RSI drops below 30, the conventional wisdom says an asset might be oversold and due for a bounce. Think of it as the market's way of saying "maybe we overdid it."

Here are two utilities players showing RSI readings near or below that 30 threshold right now.

AXIA Energia SA (AXIA)

Talk about a rough week. AXIA shares tumbled around 20% over the past five trading days, pushing the stock close to its 52-week low of $8.78. That kind of decline tends to raise eyebrows among value hunters looking for potential turnaround plays.

  • RSI Value: 28.9
  • AXIA Price Action: Shares of AXIA edged up 0.2% to close at $9.07 on Wednesday.
  • Edge Stock Ratings: The company scores 91.92 on momentum metrics and 93.51 on value, suggesting strong fundamentals despite the recent selloff.

When a stock drops this quickly, the RSI reading below 29 signals that selling pressure may have reached an extreme. Whether that translates into a buying opportunity depends on why the stock fell in the first place, but the technical picture certainly suggests oversold conditions.

ReNew Energy Global PLC (RNW)

ReNew Energy Global has had an even tougher stretch, with shares falling approximately 28% over the past month. The stock recently traded near its 52-week low of $5.04, putting it firmly in oversold territory.

Here's the interesting part: while the stock was getting hammered, the company announced some genuinely positive news. On December 16, ReNew Energy Global signed a long-term agreement with Google to develop a new 150 megawatt solar project in Rajasthan, India. That's the kind of deal that typically moves stocks higher, not lower.

Vaishali Nigam Sinha, Co-founder and Chairperson of Sustainability at ReNew, said: "This partnership with Google reflects the growing global confidence in India's clean energy ecosystem and ReNew's ability to deliver climate-positive solutions at scale. Long-term agreements of this kind are catalytic, they enable new renewable capacity, support India's energy transition and help global companies meet ambitious sustainability commitments. We are proud to work with Google on a model that sets a powerful precedent for credible, high-impact climate action."

  • RSI Value: 27.3
  • RNW Price Action: Shares of ReNew Energy Global gained 1.5% to close at $5.50 on Wednesday.
  • Edge Stock Ratings: Momentum comes in at just 9.61, reflecting the recent weakness, though the value score of 95.80 suggests the company may be significantly undervalued at current levels.

The disconnect between positive corporate developments and negative stock performance creates an intriguing setup. Sometimes the market gets so focused on selling that good news gets ignored until sentiment shifts.

Both stocks show classic oversold characteristics: sharp declines, low RSI readings, and prices hovering near 52-week lows. Whether these represent genuine bargains or value traps depends on the underlying business fundamentals and why investors have been selling. But for traders watching technical indicators, these names are flashing the kinds of signals that often precede a reversal.

Back to Stock Market News

Two Oversold Utilities Stocks Worth Watching This Month

MarketDash Editorial Team
4 hours ago
When stocks in the utilities sector get hammered hard enough, they sometimes present compelling value opportunities. Here are two names with RSI readings below 30 that might be worth a closer look for contrarian investors.

When everyone's running away from a stock, sometimes that's your signal to take a closer look. The most oversold names in the utilities sector can offer an entry point into companies trading below their typical valuation levels.

The Relative Strength Index is a momentum indicator that measures how a stock performs on up days versus down days. It's basically a way to gauge whether something has been beaten down too hard, too fast. When the RSI drops below 30, the conventional wisdom says an asset might be oversold and due for a bounce. Think of it as the market's way of saying "maybe we overdid it."

Here are two utilities players showing RSI readings near or below that 30 threshold right now.

AXIA Energia SA (AXIA)

Talk about a rough week. AXIA shares tumbled around 20% over the past five trading days, pushing the stock close to its 52-week low of $8.78. That kind of decline tends to raise eyebrows among value hunters looking for potential turnaround plays.

  • RSI Value: 28.9
  • AXIA Price Action: Shares of AXIA edged up 0.2% to close at $9.07 on Wednesday.
  • Edge Stock Ratings: The company scores 91.92 on momentum metrics and 93.51 on value, suggesting strong fundamentals despite the recent selloff.

When a stock drops this quickly, the RSI reading below 29 signals that selling pressure may have reached an extreme. Whether that translates into a buying opportunity depends on why the stock fell in the first place, but the technical picture certainly suggests oversold conditions.

ReNew Energy Global PLC (RNW)

ReNew Energy Global has had an even tougher stretch, with shares falling approximately 28% over the past month. The stock recently traded near its 52-week low of $5.04, putting it firmly in oversold territory.

Here's the interesting part: while the stock was getting hammered, the company announced some genuinely positive news. On December 16, ReNew Energy Global signed a long-term agreement with Google to develop a new 150 megawatt solar project in Rajasthan, India. That's the kind of deal that typically moves stocks higher, not lower.

Vaishali Nigam Sinha, Co-founder and Chairperson of Sustainability at ReNew, said: "This partnership with Google reflects the growing global confidence in India's clean energy ecosystem and ReNew's ability to deliver climate-positive solutions at scale. Long-term agreements of this kind are catalytic, they enable new renewable capacity, support India's energy transition and help global companies meet ambitious sustainability commitments. We are proud to work with Google on a model that sets a powerful precedent for credible, high-impact climate action."

  • RSI Value: 27.3
  • RNW Price Action: Shares of ReNew Energy Global gained 1.5% to close at $5.50 on Wednesday.
  • Edge Stock Ratings: Momentum comes in at just 9.61, reflecting the recent weakness, though the value score of 95.80 suggests the company may be significantly undervalued at current levels.

The disconnect between positive corporate developments and negative stock performance creates an intriguing setup. Sometimes the market gets so focused on selling that good news gets ignored until sentiment shifts.

Both stocks show classic oversold characteristics: sharp declines, low RSI readings, and prices hovering near 52-week lows. Whether these represent genuine bargains or value traps depends on the underlying business fundamentals and why investors have been selling. But for traders watching technical indicators, these names are flashing the kinds of signals that often precede a reversal.