The most oversold stocks in the communication services 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.
SPAR Group Inc (NASDAQ:SGRP)
- On Aug. 14, SPAR Group posted in-line quarterly earnings. Mike Matacunas, the Company’s President and Chief Executive Officer, commented, “Our second quarter results reflect a focus on simplification and driving growth in the Americas, specifically the U.S. and Canada. Our revenues in the second quarter were up 37% in the ongoing U.S. business and 14% in Canada.” The company’s stock fell around 20% over the past month and has a 52-week low of $0.70.
- RSI Value: 29.68
- SGRP Price Action: Shares of SPAR Group fell 4.7% to close at $1.63 on Wednesday.
- Benzinga Pro’s real-time newsfeed alerted to latest SGRP news.
Tencent Music Entertainment Group – ADR (NYSE:TME)
- On Aug. 13, Tencent Music Entertainment reported a fiscal second-quarter 2024 revenue decline of 1.7% year-over-year to $985.00 million (7.16 billion Chinese yuan), missing the analyst consensus estimate of $996.68 million. Cussion Pang, Executive Chairman of TME, commented, “We are pleased to report another quarter of robust results, driven by the strong performance of our online music services. With over 10 million net subscriber additions in the first half of 2024 and ARPPU expansion, we continue to break new grounds within China’s streaming landscape.” The company’s stock fell around 30% over the past month. It has a 52-week low of $5.96
- RSI Value: 28.08
- TME Price Action: Shares of Tencent Music gained 0.6% to close at $10.44 on Wednesday.
- Benzinga Pro’s charting tool helped identify the trend in TME stock.
Motorsport Games Inc (NASDAQ:MSGM)
- On Aug. 9, Motorsport Games reported better-than-expected second-quarter financial results. “We are pleased to have built upon the foundation that our successful launch of Le Mans Ultimate achieved in February 2024 in this quarter,” stated Stephen Hood, President and Chief Executive Officer of Motorsport Games. The company’s shares fell around 51% over the past month and has a 52-week low of $1.01.
- RSI Value: 28.84
- MSGM Price Action: Shares of Motorsport Games gained 0.9% to close at $1.09 on Wednesday.
- Benzinga Pro’s signals feature notified of a potential breakout in MSGM shares.
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