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Three Consumer Stocks That Oversold Indicators Say Are Worth a Look

MarketDash Editorial Team
2 hours ago
When stocks in the consumer discretionary sector get beaten down, oversold indicators can point to potential buying opportunities. Here are three names with RSI levels suggesting they might be due for a bounce.

When stocks get hammered, it's not always a sign to run for the hills. Sometimes it's a sign that things got a bit overdone. That's where the concept of "oversold" comes in, and right now there are some interesting opportunities in the consumer discretionary sector if you know where to look.

The Relative Strength Index, or RSI, is one of those momentum indicators that traders use to figure out whether a stock has been pushed too far in one direction. Think of it as a measure comparing how strong a stock is on its good days versus its bad days. When the RSI drops below 30, conventional wisdom says the stock is oversold, meaning it might be due for a bounce. It's not a crystal ball, but it can give you a sense of whether a stock's recent beating might have gone too far.

Here are three major players in the consumer discretionary space that are currently flashing oversold signals, with RSI readings near or below that 30 threshold.

Best Buy Co Inc (BBY)

The electronics retailer actually had some good news recently. On Nov. 25, Best Buy reported better-than-expected third-quarter financial results and even raised its FY26 guidance. CEO Corie Barry seemed pleased with the performance: "We are pleased to report better-than-expected sales and adjusted operating income rate for the third quarter. Our comparable sales grew 2.7% as we continued to drive strong results across computing, gaming and mobile phones. We delivered sales growth across both online and stores, saw continued improvements in customer experience ratings and launched our Best Buy Marketplace."

So why is the stock oversold? Well, despite the positive earnings news, shares have fallen around 12% over the past month. The stock hit a 52-week low of $54.99, and as of Monday's close, shares were trading at $67.84 after dropping another 2.5%.

RSI Value: 24.4

BBY Price Action: Shares of Best Buy fell 2.5% to close at $67.84 on Monday.

For what it's worth, the stock carries a Momentum score of 91.92 and a Value score of 93.51, suggesting the technical indicators and valuation metrics are pointing in an interesting direction.

Harley-Davidson Inc (HOG)

The iconic motorcycle maker has been going through some organizational changes. On Dec. 10, Harley-Davidson announced that Jonathan Root would take on the roles of CFO and CCO, while Bryan Niketh was named COO. President and CEO Artie Starrs framed the moves as part of a bigger strategy: "As we reimagine our future, we are returning to what makes Harley-Davidson uniquely powerful. These changes set us up to deepen our connection to riders and dealers, accelerate data-led and tech-enabled engagement, and unlock the full potential of our operations."

The market hasn't been particularly impressed with the restructuring. The stock has tumbled around 14% over the past month and recently touched a 52-week low of $20.45. On Monday, shares closed at $20.82, down 0.9%.

RSI Value: 27.9

HOG Price Action: Shares of Harley-Davidson fell 0.9% to close at $20.82 on Monday.

Advance Auto Parts Inc (AAP)

The auto parts retailer has had a particularly rough go of it lately. On Dec. 16, Evercore ISI Group analyst Greg Melich maintained Advance Auto Parts with an In-Line rating but lowered the price target from $58 to $56. That's rarely a vote of confidence that gets investors excited.

The stock has been punished accordingly, falling around 25% over the past month. It recently hit a 52-week low of $28.89, and on Monday, shares closed at $39.87 after dropping 3.4%.

RSI Value: 29.2

AAP Price Action: Shares of Advance Auto Parts fell 3.4% to close at $39.87 on Monday.

The question with all three of these stocks is whether the selloff has created a genuine opportunity or whether there are more fundamental problems at play. Oversold indicators can signal a potential reversal, but they work best when combined with a deeper look at what's actually happening with the business. In the case of Best Buy, you've got positive earnings and guidance but a stock that keeps falling. With Harley-Davidson, there's a strategic pivot underway. And Advance Auto Parts is dealing with analyst skepticism in a challenging retail environment.

The RSI is telling you these stocks have been beaten up. What happens next depends on whether investors think the selling was overdone or justified.

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Three Consumer Stocks That Oversold Indicators Say Are Worth a Look

MarketDash Editorial Team
2 hours ago
When stocks in the consumer discretionary sector get beaten down, oversold indicators can point to potential buying opportunities. Here are three names with RSI levels suggesting they might be due for a bounce.

When stocks get hammered, it's not always a sign to run for the hills. Sometimes it's a sign that things got a bit overdone. That's where the concept of "oversold" comes in, and right now there are some interesting opportunities in the consumer discretionary sector if you know where to look.

The Relative Strength Index, or RSI, is one of those momentum indicators that traders use to figure out whether a stock has been pushed too far in one direction. Think of it as a measure comparing how strong a stock is on its good days versus its bad days. When the RSI drops below 30, conventional wisdom says the stock is oversold, meaning it might be due for a bounce. It's not a crystal ball, but it can give you a sense of whether a stock's recent beating might have gone too far.

Here are three major players in the consumer discretionary space that are currently flashing oversold signals, with RSI readings near or below that 30 threshold.

Best Buy Co Inc (BBY)

The electronics retailer actually had some good news recently. On Nov. 25, Best Buy reported better-than-expected third-quarter financial results and even raised its FY26 guidance. CEO Corie Barry seemed pleased with the performance: "We are pleased to report better-than-expected sales and adjusted operating income rate for the third quarter. Our comparable sales grew 2.7% as we continued to drive strong results across computing, gaming and mobile phones. We delivered sales growth across both online and stores, saw continued improvements in customer experience ratings and launched our Best Buy Marketplace."

So why is the stock oversold? Well, despite the positive earnings news, shares have fallen around 12% over the past month. The stock hit a 52-week low of $54.99, and as of Monday's close, shares were trading at $67.84 after dropping another 2.5%.

RSI Value: 24.4

BBY Price Action: Shares of Best Buy fell 2.5% to close at $67.84 on Monday.

For what it's worth, the stock carries a Momentum score of 91.92 and a Value score of 93.51, suggesting the technical indicators and valuation metrics are pointing in an interesting direction.

Harley-Davidson Inc (HOG)

The iconic motorcycle maker has been going through some organizational changes. On Dec. 10, Harley-Davidson announced that Jonathan Root would take on the roles of CFO and CCO, while Bryan Niketh was named COO. President and CEO Artie Starrs framed the moves as part of a bigger strategy: "As we reimagine our future, we are returning to what makes Harley-Davidson uniquely powerful. These changes set us up to deepen our connection to riders and dealers, accelerate data-led and tech-enabled engagement, and unlock the full potential of our operations."

The market hasn't been particularly impressed with the restructuring. The stock has tumbled around 14% over the past month and recently touched a 52-week low of $20.45. On Monday, shares closed at $20.82, down 0.9%.

RSI Value: 27.9

HOG Price Action: Shares of Harley-Davidson fell 0.9% to close at $20.82 on Monday.

Advance Auto Parts Inc (AAP)

The auto parts retailer has had a particularly rough go of it lately. On Dec. 16, Evercore ISI Group analyst Greg Melich maintained Advance Auto Parts with an In-Line rating but lowered the price target from $58 to $56. That's rarely a vote of confidence that gets investors excited.

The stock has been punished accordingly, falling around 25% over the past month. It recently hit a 52-week low of $28.89, and on Monday, shares closed at $39.87 after dropping 3.4%.

RSI Value: 29.2

AAP Price Action: Shares of Advance Auto Parts fell 3.4% to close at $39.87 on Monday.

The question with all three of these stocks is whether the selloff has created a genuine opportunity or whether there are more fundamental problems at play. Oversold indicators can signal a potential reversal, but they work best when combined with a deeper look at what's actually happening with the business. In the case of Best Buy, you've got positive earnings and guidance but a stock that keeps falling. With Harley-Davidson, there's a strategic pivot underway. And Advance Auto Parts is dealing with analyst skepticism in a challenging retail environment.

The RSI is telling you these stocks have been beaten up. What happens next depends on whether investors think the selling was overdone or justified.