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Three Oversold Tech Stocks Worth Watching This Month

MarketDash Editorial Team
21 hours ago
When tech stocks get beaten down, some investors see opportunity. Here's a look at three information technology sector players with RSI readings below 30, including Apple, Hewlett Packard Enterprise, and Skyworks Solutions, along with what's driving their recent weakness.

When stocks get oversold, contrarian investors tend to perk up. The thinking goes that when everyone's already sold, maybe it's time to start buying. In the information technology sector right now, there are a few notable names trading in what technical analysts call oversold territory.

The Relative Strength Index, or RSI, is a momentum indicator that measures how a stock performs on up days versus down days. When the RSI drops below 30, it typically suggests a stock has been beaten down pretty hard in the short term. That doesn't guarantee a bounce, but it does flag potential opportunities for investors willing to bet on a reversal.

Here are three major tech stocks currently showing RSI readings near or below that 30 threshold, along with what's been weighing on them lately.

Apple Inc. (AAPL)

Even the world's most valuable company isn't immune to oversold conditions. Apple has seen its stock drop about 6% over the past month, bringing its RSI down to 25.5. That's deeply oversold territory.

What's behind the weakness? Goldman Sachs recently noted that App Store year-over-year net revenue growth decelerated to 5.7% in December from 6.1% in November. Spending trends across Apple's major geographic markets have been mixed. Still, analyst Michael Ng maintained a Buy rating with a $320 price target, suggesting the firm sees the current pullback as temporary.

The stock has a 52-week low of $169.21, and shares closed at $260.35 on Wednesday, down 0.8%. From a technical perspective, Apple scores a 91.92 on momentum metrics and 93.51 on value measures, indicating strong underlying fundamentals despite the recent selloff.

Hewlett Packard Enterprise Co. (HPE)

Hewlett Packard Enterprise is another tech name showing signs of being oversold, with an RSI of 28. The stock has dropped about 6% over the past five days alone.

The catalyst was the company's December 4 earnings report, which delivered mixed fourth-quarter results. While operational performance was solid, guidance disappointed. HPE issued first-quarter GAAP EPS guidance below analyst estimates and also projected first-quarter sales that came in under expectations.

CFO Marie Myers tried to highlight the positives, noting that "HPE continued to drive operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit as well as free cash flow generation that exceeded our outlook." But investors focused on the forward-looking numbers, sending shares down 5.7% to close at $22.43 on Wednesday. The stock has a 52-week low of $11.96.

Skyworks Solutions Inc. (SWKS)

Skyworks Solutions shows the most extreme oversold reading of the three, with an RSI of just 22.2. The semiconductor company has dropped around 14% over the past month.

Back on November 11, Mizuho analyst Vijay Rakesh actually upgraded the stock from Underperform to Neutral and raised his price target from $65 to $73. But that hasn't been enough to stem the selling pressure. Shares fell 9.7% on Wednesday alone, closing at $59.82. The stock's 52-week low sits at $47.93.

For context, Skyworks manufactures analog semiconductors and is particularly exposed to smartphone demand cycles, which have been somewhat unpredictable lately.

The Opportunity and the Risk

An oversold RSI reading doesn't guarantee a stock will bounce back immediately. It simply indicates that selling pressure has been intense and that the stock might be due for at least a short-term breather. Some of these names could continue falling if the fundamental concerns deepen.

But for traders looking at momentum indicators, these three stocks are flashing signals that might warrant a closer look. Whether they represent genuine buying opportunities or value traps depends on whether the issues weighing on them prove temporary or more structural.

Back to Stock Market News

Three Oversold Tech Stocks Worth Watching This Month

MarketDash Editorial Team
21 hours ago
When tech stocks get beaten down, some investors see opportunity. Here's a look at three information technology sector players with RSI readings below 30, including Apple, Hewlett Packard Enterprise, and Skyworks Solutions, along with what's driving their recent weakness.

When stocks get oversold, contrarian investors tend to perk up. The thinking goes that when everyone's already sold, maybe it's time to start buying. In the information technology sector right now, there are a few notable names trading in what technical analysts call oversold territory.

The Relative Strength Index, or RSI, is a momentum indicator that measures how a stock performs on up days versus down days. When the RSI drops below 30, it typically suggests a stock has been beaten down pretty hard in the short term. That doesn't guarantee a bounce, but it does flag potential opportunities for investors willing to bet on a reversal.

Here are three major tech stocks currently showing RSI readings near or below that 30 threshold, along with what's been weighing on them lately.

Apple Inc. (AAPL)

Even the world's most valuable company isn't immune to oversold conditions. Apple has seen its stock drop about 6% over the past month, bringing its RSI down to 25.5. That's deeply oversold territory.

What's behind the weakness? Goldman Sachs recently noted that App Store year-over-year net revenue growth decelerated to 5.7% in December from 6.1% in November. Spending trends across Apple's major geographic markets have been mixed. Still, analyst Michael Ng maintained a Buy rating with a $320 price target, suggesting the firm sees the current pullback as temporary.

The stock has a 52-week low of $169.21, and shares closed at $260.35 on Wednesday, down 0.8%. From a technical perspective, Apple scores a 91.92 on momentum metrics and 93.51 on value measures, indicating strong underlying fundamentals despite the recent selloff.

Hewlett Packard Enterprise Co. (HPE)

Hewlett Packard Enterprise is another tech name showing signs of being oversold, with an RSI of 28. The stock has dropped about 6% over the past five days alone.

The catalyst was the company's December 4 earnings report, which delivered mixed fourth-quarter results. While operational performance was solid, guidance disappointed. HPE issued first-quarter GAAP EPS guidance below analyst estimates and also projected first-quarter sales that came in under expectations.

CFO Marie Myers tried to highlight the positives, noting that "HPE continued to drive operational discipline in Q4, resulting in record gross profit and robust non-GAAP operating profit as well as free cash flow generation that exceeded our outlook." But investors focused on the forward-looking numbers, sending shares down 5.7% to close at $22.43 on Wednesday. The stock has a 52-week low of $11.96.

Skyworks Solutions Inc. (SWKS)

Skyworks Solutions shows the most extreme oversold reading of the three, with an RSI of just 22.2. The semiconductor company has dropped around 14% over the past month.

Back on November 11, Mizuho analyst Vijay Rakesh actually upgraded the stock from Underperform to Neutral and raised his price target from $65 to $73. But that hasn't been enough to stem the selling pressure. Shares fell 9.7% on Wednesday alone, closing at $59.82. The stock's 52-week low sits at $47.93.

For context, Skyworks manufactures analog semiconductors and is particularly exposed to smartphone demand cycles, which have been somewhat unpredictable lately.

The Opportunity and the Risk

An oversold RSI reading doesn't guarantee a stock will bounce back immediately. It simply indicates that selling pressure has been intense and that the stock might be due for at least a short-term breather. Some of these names could continue falling if the fundamental concerns deepen.

But for traders looking at momentum indicators, these three stocks are flashing signals that might warrant a closer look. Whether they represent genuine buying opportunities or value traps depends on whether the issues weighing on them prove temporary or more structural.