Bargain Alert on 3 Stocks Investors Have Oversold

Relative strength index (RSI) is a powerful tool in the technical analyst's toolbox. It measures a stock's price change momentum and helps to determine whether a given company has recently been overbought or oversold.

Ranging from 0 to 100, the lower the level of the RSI for a particular firm, the more likely that average losses over prior periods have increasingly exceeded average gains. 

For many investors, a threshold point of 30 for a company's RSI suggests oversold conditions—and the potential for a trend reversal that could lead to future gains.

The three companies below may warrant a closer look by investors aiming to identify oversold firms. Each has an RSI level below 30, as well as support from a majority of analysts rating each company.

Investors Have Turned From Amentum Despite Some Recent Successes

Amentum (NYSE: AMTM) is a defense contractor that provides infrastructure, energy, facilities, and other services to both defense and commercial customers. Shares of AMTM are down about 20% in the last 12 months despite the firm's strong third quarter of its fiscal 2025 on many fronts.

Revenue climbed by 66% year-over-year (YoY) on a GAAP basis but fell short of analyst predictions, while the company posted a 3-cent earnings beat as its nuclear business continues to grow. 

Major awards with the U.S. Space Force and Canadian Nuclear Labs were highlights, as was Amentum's repayment of $450 million in debt during the quarter.

Six of 10 analysts rated AMTM shares and assigned the stock a Buy rating. With a consensus price target of $28.40, the firm has more than 27% upside potential compared to its current price. 

Further, some value metrics are flashing for Amentum—price/sales ratio is 0.66, for example. Nonetheless, investors have shied away from this company.

In the last month, short interest has climbed by 14%, and Amentum has an RSI level of 25.7 based on the last 14 days of trading, per MarketBeat's RSI calculator.

Facing Pressures, Gogo Aims to Capture Satcom and 5G Markets

Gogo Inc. (NASDAQ: GOGO) is well-known to those inside and outside the investment world as the provider of in-flight wireless and entertainment services on airlines across the United States.

Facing increasing pressure from Starlink, Gogo launched its Galileo HDX satcom service earlier this year. The company's roll-out of its enhanced 5G service is also in progress—both of these developments will likely be key to the firm's fortunes in the coming quarters and beyond.

Gogo may also be building momentum in its fundamentals, having posted beats to top and bottom lines in the latest quarter, thanks to record equipment sales that have also driven free cash flow of $62 million. Still, while GOGO shares are up 6% year-to-date (YTD), they have fallen more recently and are down almost 21% in the last month.

Accordingly, the firm's RSI based on a 14-day history is just 12.8, while short interest has climbed by almost 8% in the last month. However, two out of three analysts have called GOGO a Buy, and the consensus price target suggests significant upside potential of almost 68%.

Revenue Improvement for DoubleVerify Contrasts With Recent Share Performance

Digital media data and analytics firm DoubleVerify Inc. (NYSE: DV) offers ad view measurement, brand safety, and similar services. However, the company faces challenges related to AI's impact on its operations and demand, which has introduced uncertainty that has made some investors cautious.

DV shares have fallen by more than 38% YTD, despite some bright spots in the firm's latest earnings, including a 21% YoY revenue improvement and a beat in that area.

The firm also expects revenue growth to continue going forward, having recently raised its guidance from about 13% to about 15% for the year. Improvement in DoubleVerify's Social Measurement business has been key to that optimism.

DoubleVerify's RSI is 17.9 based on results over the last 14 days, suggesting oversold conditions. On the other hand, short interest in DV shares has fallen by more than 8% in the past month. 14 analysts affirmed DV as a Buy, while only eight have called it a Hold or Sell.

Price estimates also suggest about 62% in upside possible going forward, a sign that a turnaround may be near.

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The article "Bargain Alert on 3 Stocks Investors Have Oversold" first appeared on MarketBeat.