Top 3 Consumer Stocks Which Could Rescue Your Portfolio In July

More Data, More Risk—for Consumers Too

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

KinderCare Learning Companies Inc (NYSE:KLC)

• On June 11, Goldman Sachs analyst George Tong maintained KinderCare Learning with a Buy and lowered the price target from $26 to $23. The company's stock fell around 16% over the past month and has a 52-week low of $9.17.
• RSI Value: 26.8
• KLC Price Action: Shares of KinderCare Learning fell 7% to close at $9.25 on Monday.
• Edge Stock Ratings: Value at 29.38.

Bright Horizons Family Solutions Inc (NYSE:BFAM)   

• On June 23, Jefferies analyst Hamzah Mazari downgraded Bright Horizons Family from Buy to Hold and lowered the price target from $146 to $135. The company's stock fell around 5% over the past five days and has a 52-week low of $103.75.
• RSI Value: 28.3
• BFAM Price Action: Shares of Bright Horizons Family Solutions fell 2.8% to close at $117.24 on Monday.
• Benzinga Pro’s charting tool helped identify the trend in BFAM stock.

Gaotu Techedu Inc (NYSE:GOTU)

• On May 15, Gaotu Techedu reported a year-over-year increase in first-quarter sales results. Larry Xiangdong Chen, the Company’s founder, Chairman and CEO, commented, “In the first quarter of 2025, we delivered results that surpassed expectations across revenue, profit, user growth, and organizational efficiency." The company's stock fell around 14% over the past month and has a 52-week low of $1.87.
• RSI Value: 29.9
• GOTU Ltd Price Action: Shares of Gaotu Techedu fell 2.3% to close at $3.45 on Monday.
• Benzinga Pro’s signals feature notified of a potential breakout in GOTU shares.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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