These 3 Household Names Are Flashing Rare Oversold Signals

After another bumper year for equities and mega-cap tech stocks in general, it can be easy to miss what’s been happening in the shadows. While benchmark indices like the S&P 500 are on the verge of logging yet another record close, some of the most interesting opportunities right now are not the stocks making headlines, but rather the ones that have been left behind.

A useful indicator to sniff out these overlooked setups is the relative strength index, or RSI. In simple terms, it measures momentum on a scale of 0 to 100, with readings below 30 typically signaling extremely oversold conditions. Using that lens, a handful of familiar names stand out right now. Here are three well-known household stocks with oversold RSIs that could be shaping up as comeback contenders for 2026.

Nike: Capitulation Levels Are Coming Into View

Nike Inc. (NYSE: NKE) has had a brutal year, and the recent sell-off only added to the damage. The stock is down roughly 17% in barely two weeks, with most of that coming after its earnings report last week. While Nike beat earnings expectations, investors focused instead on lingering concerns around the pace of its turnaround and ongoing weakness in China.

Technically, the damage has been severe. Nike’s RSI has dropped to around 29, firmly in extremely oversold territory, with the stock now trading back at 2015 levels and sitting nearly 70% below its all-time high.

That kind of reset forces a different conversation. Expectations look washed out and market sentiment remains weak, even as Wall Street’s consensus is still relatively constructive—MarketBeat currently lists Nike as a Moderate Buy. With the stock also approaching an area of long-term support, this is the kind of level where bulls may try to draw a line in the sand. If shares can stabilize and finish the year on firmer footing, it may be enough to shift the narrative from “falling knife” to “base-building.”

AutoZone: Momentum Is Starting to Turn After a Sharp Breakdown

AutoZone's (NYSE: AZO) chart looks very different from Nike’s, but the setup shares an important similarity. After a multi-year rally, the stock has been coming undone since September and is now down more than 20% from its highs. Earlier this month, a disappointing earnings report triggered a sharp 10% single-day drop, accelerating the sell-off and pushing sentiment firmly into bearish territory.

That move has pushed AutoZone’s RSI down into extremely oversold levels. But in the two weeks since then, something notable has happened—the stock has stopped going down. Despite multiple attempts, bears have been unable to force a new low, and price action has shifted from decline to consolidation.

Momentum indicators are starting to confirm that change. The RSI has been turning higher from oversold levels, and the MACD is on the verge of a bullish crossover. That combination often suggests a changing of the guard from the bears to the bulls, and tends to precede a move higher. 

Analyst sentiment adds another layer of support to this theory. The team at JPMorgan reiterated its Overweight rating on AutoZone last week with a $4,100 price target, echoing the move from Roth Capital and their $4,650 target. For a stock that has just been through a sharp technical reset, that kind of refreshed targeted upside is hard to ignore.

Costco: A Rare Pullback in a Long-Term Winner

Costco Wholesale's (NASDAQ: COST) pullback has been a little quieter but is no less significant. After rallying steadily through 2024 and into February of this year, the stock has been in a broad trend reversal and is down 20% over the past six months. 

Technically, Costco is oversold and on the verge of being extremely so. What makes this setup so interesting, though, is that the sell-off came despite solid fundamentals. Earlier this month, Costco delivered a solid earnings beat on both headline metrics, suggesting that the business itself remains in good shape.

Recent analyst commentary supports that view, even from firms that are not outright bullish. Wells Fargo reiterated its Neutral stance last week and set a $900 price target, while Daiwa Capital Markets did the same but with a $917 target. Given Costco is trading around $855 this week, those targets imply the stock is an absolute bargain right now.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "These 3 Household Names Are Flashing Rare Oversold Signals" first appeared on MarketBeat.