The stock market's impressive and resilient performance in 2024, with the SPDR S&P 500 ETF up over 21% YTD and trading at all-time highs, has led many investors to chase high-flying stocks at all-time highs. However, this approach can be risky as stocks stretched to the upside might face corrections. Instead, focusing on oversold stocks that offer solid risk-to-reward ratios may be more rewarding.
Identifying oversold stocks can be done using several strategies: valuation metrics like P/E ratios, technical indicators like RSI (with a reading below 40 suggesting oversold conditions), or analyzing a stock's price action around crucial support levels within a broader uptrend.
Here's a look at three stocks that appear oversold and may present attractive buying opportunities.
Micron Retraces Following Earnings Beat
Micron Technology, Inc. (NASDAQ: MU), a significant player in the semiconductor industry, recently posted a strong earnings beat on September 25th, but shares have since pulled back. After surging to $114.8 following the earnings report, the stock has retraced to $101.7. Despite this pullback, the stock has found support and looks ready to continue its upward trend, presenting an attractive risk-reward opportunity for investors.
In its latest earnings report, Micron posted an EPS of $1.18, beating estimates by $0.21, with revenue of $7.75 billion, up 93.3% ...
