A bear market ravages equities, and few have been spared. Even blue-chip stocks which boast the best balance sheets in the land have been battered. But nothing goes straight down, and oversold stocks often rebound when you least expect it. It’s a byproduct of mean reversion which pulls extended stock prices back after they get too stretched in one direction or the other.
The process of discovering them was simple. First, I pulled open a list of the S&P 100, which includes the biggest 100 companies on the planet. These blue-chip stocks are battle-tested industry titans with a history of weathering economic downturns. Second, I sorted the companies by their Relative Strength Index (or RSI) to identify who was the most oversold. Third, I looked through the bottom quintile to nail down those with the most compelling setups.
These were the three that rose above the rest.
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