List of Oversold Stocks to Buy Today
Oversold stocks can be a great opportunity to make gains. When you buy an oversold stock, you might be investing in a well-known company. It might have a temporary mar on its name, or something similar.
Sometimes investors will run from a company. This might be because of a recent event, bad news with the company or a low outlook for the industry. Investors see that and there is some major selling. This large amount of selling can send the stock price tumbling.
When investors sell so much stock that the price falls below its actual value, it has become oversold. This can happen when the market overreacts to a piece of information.
When a stock becomes oversold, though, it’s a good thing for new investors. You can buy the stock, and sometimes see quick returns as it rebounds.
Usually, an RSI below 30% indicates an oversold stock. It also presents a possible opportunity for making gains.
RSI stands for Relative Strength Index. In the following oversold stocks, I’ll add the RSI for each one. And check out this list of technical indicators for more insight.
When buying oversold stocks, it is still important to do your research. You want to make sure the company is well-known and still in good shape. You want to make sure it can recover. And the faster, the better.
Find out why the stock has gone down, why it’s being oversold. Then judge whether that will have a long-term effect on the company’s stock.
Long-term negative effects = bad for your gains
Sometimes, buying an oversold stock does not lead to returns. Sometimes they keep falling and the investor loses their capital.
So, it’s important to do due diligence. Make sure the business knows what it’s doing, and the dip is temporary.
Oversold Stocks to Buy
- Berkshire Hathaway (NYSE: BRK.B)
- Capital One Financial (NYSE: COF)
- FedEx (NYSE: FDX)
- Target (NYSE: TGT)
- Union Pacific (NYSE: UNP)
- 3M (NYSE: MMM)
Why Buy These Oversold Stocks?
Berkshire Hathaway Class B
Warren Buffet owns Berkshire. It’s a holding company comprised of various other companies or pieces of companies it owns. Investors know Warren Buffett and Berkshire for its ability to succeed long-term. Here are some of the top Warren Buffett Quotes.
One possible reason Berkshire might be down right now is that it scores low on environmental, social and governance factors (ESG). More funds are leaning into ESG when picking which investments to include in their portfolios.
Although, Berkshire’s strategy might change a little with new management. Buffet has chosen a successor for the company. Once that shift happens, it’s expected that the new owner will fix those issues. Then the company will be open to more investors with a lot of money.
Berkshire is split into two Classes: A and B. Berkshire B could be one oversold stock that gives some great returns. As of early September, its 14-day RSI was around 24%.
Capital One Financial
Capital One stock has been going strong since 1995. Plus, buying this stock will get you dividends! It’s been regularly giving dividends and long-term investors have collected a lot of income.
The share price is in a long-term uptrend but has. recently pulled back. And that might be good for investors to buy in.
COVID-19 created an economic slowdown, and Capital One felt it. Since they are a financial services company, this is only natural. People stopped spending so much because they didn’t have as much income flowing in. So naturally, parts of the financial services industry took a hit.
As of early September, Capital One’s 14-day RSI was at 26%. So Capital One isn’t a dramatically oversold stock, but it could still give you a good return on investment (ROI). Here’s a free ROI calculator to test out potential returns.
FedEx
If you don’t know, FedEx is a delivery and shipping service company. It’s seen a large bump in price after the pandemic. This is because stock went very low during the pandemic. Investors bought, and then the price surged with so many people buying.
FedEx stock has been dropping, but nobody is sure why. It could be several reasons. Even so, its long-term outlook is positive. Plus, there is talk of FedEx soon using drones for delivery.
As of early September, FedEx’s 14-day RSI is at 21%. This is easily one of the most oversold stocks that might be worth buying.
Target
Target thrived during the pandemic. Its prices brought in many consumers from its competitors. Target’s stock suffered a deep bear when the pandemic began in March 2020. Since then, though, the stock climbed quickly to reach an all-time high at the beginning of August 2021.
Although, in the past month, there’s been a decline. It could be a correction from the dramatic bull and more than likely it’s temporary. Target has been in the market a long time. It’s very unlikely a dip like this is going to put it out of business.
The decline could be from its lack of workers. Just a theory. And as of early September, Target’s 14-day RSI was around 24%.
Union Pacific
Union Pacific has had its share of stock peaks and falls. The most recent happened at the beginning of the pandemic. Since then, it’s been chugging upwards. It has fallen in the short-term, and this could be a great buying opportunity.
This is one company that has been in the market for decades. And despite growing environmental worries, I don’t think it’s going anywhere for a long time, either.
As of early September, Union Pacific’s 14-day RSI was around 8%. This is one stock that is very oversold. This could be a huge money maker. Do your homework and consider buying this oversold stock.
3M Company
3M has recently had lawsuits in 2020 over safety of some products. One of them was military earplugs. There were many lawsuits over the earplugs, and in May, 3M won a case. Many people accused it of covering up design flaws in the earplugs.
The other large issue was environmental concerns of the manufacturing plants. 2020 saw a sag in price and investors shied away because of these lawsuits.
Things are looking much better for 3M. Its revenues have bounced back. More than likely, the environmental issues will resolve also. As of early September, 3M’s 14-day RSI was around 26%.
Oversold Stocks and Other Investing Opportunities
Oversold stocks need to be thoroughly researched before you put money in. There is a reason they are oversold. But if the company is likely to rebound quickly from it, putting some cash into the stock could bring you a great ROI. Here are some other investing opportunities as well…
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