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.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
Chevron Corporation CVX
- Chevron reported weaker-than-expected earnings for its third quarter on Friday. The company’s stock has a 52-week low of $143.96 .
- RSI Value: 28.05
- CVX Price Action: Shares of Chevron fell 0.3% to close at $145.73 on Tuesday.
Dawson Geophysical Company DWSN
- For the quarter ended June 30, 2023, the Company reported revenues of $20,219,000 versus $4,765,000 in the year-ago period. It has a 52-week low of $1.28.
- RSI Value: 28.42
- DWSN Price Action: Shares of Dawson Geophysical fell 0.6% to close at $1.60 on Tuesday.
World Kinect Corporation WKC
- World Kinect posted better-than-expected quarterly sales. “As our team continues to deliver for our global customer base, evidenced by our solid results within the quarter, we remain focused on our strategy to accelerate growth by maximizing efficiencies in our conventional business, expanding our suite of energy-management solutions and increasing the availability of renewable and low-carbon fuels,” said Michael J. Kasbar, Chairman and Chief Executive Officer. The company’s stock has a 52-week low of $17.69.
- RSI Value: 26.27
- WKC Price Action: Shares of World Kinect gained 0.9% to close at $18.50 on Tuesday.
Seadrill Limited SDRL
- Seadrill reported a second-quarter operating revenue of $414 million (+56% Q/Q), with economic utilization of 93%. “We delivered strong results this quarter, and the full year continues to be in line with previous guidance. This quarter, we executed decisively on strategic initiatives that simplify and strengthen our organization. We established greater scale with the closing of the Aquadrill acquisition,” said Simon Johnson, President and Chief Executive Officer. The company’s 52-week low is $28.36.
- RSI Value: 26.81
- SDRL Price Action: Shares of Seadrill fell 0.3% to close at $39.52 on Tuesday.
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