It’s been a rough year for many stocks. And that includes several stocks that outperformed the market in 2021. One strategy that forward-thinking investors employ is to look for oversold stocks. One way to identify such stocks is by looking at a stock’s relative strength indicator (RSI). An RSI of 30 or lower indicates a stock that is oversold. However, any number under 50 suggests there could be bearish sentiment.
The question for investors, however, is which of these stocks are oversold for a reason and which are just oversold? This article looks at five stocks that are down significantly in 2022. Each one has dropped for a reason but gives investors reason to believe there could be a turnaround story in 2023.
This post appeared at Dynamic Wealth Report.