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Three Communication Services Stocks Trading at Oversold Levels Worth Watching

MarketDash Editorial Team
2 hours ago
When stocks in the communication services sector hit oversold territory, they can present interesting opportunities for contrarian investors. Three companies currently showing RSI readings below 30 include a theater chain rebounding from a strong holiday weekend, a company pursuing a business combination, and a firm with new executive leadership.

When stocks get beaten down hard enough, they can start to look interesting again. That's the basic premise behind tracking oversold conditions in any sector, and right now the communication services space has a few names that have been particularly battered.

The tool traders use to spot these situations is the Relative Strength Index, or RSI. Think of it as a momentum thermometer that measures how strong a stock is on its good days compared to its bad days. When the RSI drops below 30, conventional wisdom says the stock might be oversold and due for a bounce. It's not a guarantee, obviously, but it's a starting point for finding potential value plays.

Here are three communication services companies currently showing RSI readings near or below that 30 threshold.

AMC Entertainment Holdings Inc

AMC Entertainment Holdings Inc. (AMC) just had something worth celebrating. On December 22nd, the theater chain reported its strongest pre-Christmas weekend since 2021, bringing more than 4 million guests through its doors between Thursday and Sunday. The big draw was Avatar: Fire & Ash, which pulled in a reported $88 million domestically. What's particularly interesting is that premium formats carried the day, with roughly 67% of admissions revenue coming from 3D screenings. People were willing to pay up for the full experience.

Despite this positive momentum, AMC's stock has taken a beating, dropping around 28% over the past month. The shares are now trading near their 52-week low of $1.61, which explains why the stock is showing oversold characteristics.

RSI Value: 22.6

AMC Price Action: Shares of AMC rose 0.3% to close at $1.69 on Friday.

Brera Holdings PLC

Brera Holdings PLC (SLMT) is pursuing a potential transformation. On December 4th, Solmate signed a non-binding term sheet for a business combination with RockawayX in an all-stock transaction. It's still early days since this is just a term sheet, not a done deal, but it's the kind of corporate action that can shake up a stock's trajectory.

The market hasn't been particularly kind to Brera Holdings lately, with the stock falling approximately 14% over the past five days alone. The shares are hovering just above their 52-week low of $1.80, putting them firmly in oversold territory.

RSI Value: 26.2

SLMT Price Action: Shares of Brera Holdings gained 1.9% to close at $2.10 on Friday.

Nomadar Corp

Nomadar Corp (NOMA) made a significant leadership move on December 9th, naming Joaquin Martin as CEO Americas and Executive Vice Chairman. According to Rafael Contreras, Nomadar's Executive Chairman, Martin has been instrumental in the company's development from its earliest stages and led the company through its complex Nasdaq listing process. Leadership changes like this can signal either a fresh direction or underlying challenges, depending on how you read it.

The stock has been under serious pressure, falling around 36% over the past month. With shares trading near their 52-week low of $4.88, Nomadar shows the most severely oversold reading of the three companies on this list.

RSI Value: 25

NOMA Price Action: Shares of Nomadar fell 6.7% to close at $5.47 on Friday.

The key thing to remember about oversold stocks is that they're oversold for a reason. Sometimes that reason is temporary market pessimism that creates an opportunity. Other times there are fundamental problems that justify the selloff. The RSI can tell you when a stock has been beaten down, but it can't tell you whether it deserves to be.

Back to Stock Market News

Three Communication Services Stocks Trading at Oversold Levels Worth Watching

MarketDash Editorial Team
2 hours ago
When stocks in the communication services sector hit oversold territory, they can present interesting opportunities for contrarian investors. Three companies currently showing RSI readings below 30 include a theater chain rebounding from a strong holiday weekend, a company pursuing a business combination, and a firm with new executive leadership.

When stocks get beaten down hard enough, they can start to look interesting again. That's the basic premise behind tracking oversold conditions in any sector, and right now the communication services space has a few names that have been particularly battered.

The tool traders use to spot these situations is the Relative Strength Index, or RSI. Think of it as a momentum thermometer that measures how strong a stock is on its good days compared to its bad days. When the RSI drops below 30, conventional wisdom says the stock might be oversold and due for a bounce. It's not a guarantee, obviously, but it's a starting point for finding potential value plays.

Here are three communication services companies currently showing RSI readings near or below that 30 threshold.

AMC Entertainment Holdings Inc

AMC Entertainment Holdings Inc. (AMC) just had something worth celebrating. On December 22nd, the theater chain reported its strongest pre-Christmas weekend since 2021, bringing more than 4 million guests through its doors between Thursday and Sunday. The big draw was Avatar: Fire & Ash, which pulled in a reported $88 million domestically. What's particularly interesting is that premium formats carried the day, with roughly 67% of admissions revenue coming from 3D screenings. People were willing to pay up for the full experience.

Despite this positive momentum, AMC's stock has taken a beating, dropping around 28% over the past month. The shares are now trading near their 52-week low of $1.61, which explains why the stock is showing oversold characteristics.

RSI Value: 22.6

AMC Price Action: Shares of AMC rose 0.3% to close at $1.69 on Friday.

Brera Holdings PLC

Brera Holdings PLC (SLMT) is pursuing a potential transformation. On December 4th, Solmate signed a non-binding term sheet for a business combination with RockawayX in an all-stock transaction. It's still early days since this is just a term sheet, not a done deal, but it's the kind of corporate action that can shake up a stock's trajectory.

The market hasn't been particularly kind to Brera Holdings lately, with the stock falling approximately 14% over the past five days alone. The shares are hovering just above their 52-week low of $1.80, putting them firmly in oversold territory.

RSI Value: 26.2

SLMT Price Action: Shares of Brera Holdings gained 1.9% to close at $2.10 on Friday.

Nomadar Corp

Nomadar Corp (NOMA) made a significant leadership move on December 9th, naming Joaquin Martin as CEO Americas and Executive Vice Chairman. According to Rafael Contreras, Nomadar's Executive Chairman, Martin has been instrumental in the company's development from its earliest stages and led the company through its complex Nasdaq listing process. Leadership changes like this can signal either a fresh direction or underlying challenges, depending on how you read it.

The stock has been under serious pressure, falling around 36% over the past month. With shares trading near their 52-week low of $4.88, Nomadar shows the most severely oversold reading of the three companies on this list.

RSI Value: 25

NOMA Price Action: Shares of Nomadar fell 6.7% to close at $5.47 on Friday.

The key thing to remember about oversold stocks is that they're oversold for a reason. Sometimes that reason is temporary market pessimism that creates an opportunity. Other times there are fundamental problems that justify the selloff. The RSI can tell you when a stock has been beaten down, but it can't tell you whether it deserves to be.