The most oversold stocks in the energy 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.
Comstock Resources Inc (NYSE:CRK)
- On Aug. 18, Roth Capital analyst Leo Mariani downgraded Comstock Resources from Neutral to Sell and lowered the price target from $18 to $12. The company's stock fell around 26% over the past month and has a 52-week low of $9.09.
- RSI Value: 29.1
- CRK Price Action: Shares of Comstock Resources gained 1.4% to close at $15.62 on Thursday.
- Edge Stock Ratings: 63.11 Momentum score with Value at 5.32.
Alliance Resource Partners LP (NASDAQ:ARLP)
- On July 28, Alliance Resource Partners reported worse-than-expected second-quarter financial results and cut its dividend to $0.70 per share from $0.60. “All operations performed well during the quarter, with the exception of Tunnel Ridge that continued to experience challenging mining conditions,” commented Joseph W. Craft III, Chairman, President and CEO. The company's stock fell around 14% over the past month and has a 52-week low of $22.30.
- RSI Value: 24.6
- ARLP Price Action: Shares of Alliance Resource Partners gained 0.8% to close at $23.16 on Thursday.
- Benzinga Pro’s charting tool helped identify the trend in ARLP stock.
Dorchester Minerals LP (NASDAQ:DMLP)
- On Aug. 7, Dorchester Minerals posted a decline in second-quarter EPS. The company's stock fell around 11% over the past month and has a 52-week low of $24.01.
- RSI Value: 23.7
- DMLP Ltd Price Action: Shares of Dorchester Minerals fell 0.3% to close at $24.20 on Thursday.
- Benzinga Pro’s signals feature notified of a potential breakout in DMLP 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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