Top 5 Materials Stocks That Could Blast Off This Month

The most oversold stocks in the materials 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.

Summit Materials, Inc. (NYSE: SUM)

• Summit Materials announced a combination with Argos USA. "This combination accelerates the strategic growth plans for both Argos North America and Summit," said Simon Bates, CEO of Argos North America. "As a result of the combination, our ability to share best practices and the increased access to aggregate sources will enable us to better serve our customers." The company’s stock has a 52-week low of $22.80 .
• RSI Value: 29.12
• SUM Price Action: Shares of Summit Materials fell 3.2% to close at $32.34 on Friday.

Stepan Company (NYSE: SCL)

• Stepan posted downbeat quarterly results. "Looking forward, we continue to believe second half of the year volume and margins will incrementally improve versus the first half of 2023, driven by the continued gradual recovery in Rigid Polyol demand, growth in Surfactant volumes associated with new contracted business and sequentially lower raw material costs," said Scott Behrens, President and Chief Executive Officer. It has a 52-week low of $77.20.
• RSI Value: 17.44
• SCL Price Action: Shares of Stepan fell 1.8% to close at $77.65 on Friday.

Sibanye Stillwater Limited (NYSE: SBSW)

• The company’s stock declined 16% over the past month. The company’s stock has a 52-week low of $5.45.
• RSI Value: 29.79
• SBSW Price Action: Shares of Sibanye Stillwater fell 2.3% to close at $5.47 on Friday.

Compass Minerals International, Inc. (NYSE: CMP)

• Compass Minerals Intl posted a profit for the third quarter. "The third quarter demonstrates tangible progress toward executing upon several strategic priorities that we believe over time will accelerate our growth and enhance the value of the enterprise," said Kevin S. Crutchfield, president and CEO. The company’s 52-week low is $27.95.
• RSI Value: 27.83
• CMP Price Action: Shares of Compass Minerals International rose 0.4% to close at $28.80 on Friday.

FMC Corporation (NYSE: FMC)

• Blue Orca Capital is short on FMC, noting that the company has not disclosed its recent legal setbacks worldwide. The report says, "The dam has broken." The company has a 52-week low of $74.81.
• RSI Value: 15.06
• FMC Price Action: Shares of FMC fell 0.8% to close at $75.46 on Friday.

Read More: https://www.benzinga.com/trading-ideas/long-ideas/23/09/34361148/7-7m-bet-on-this-mobile-satellite-communications-specialist-check-out-these-3-penny-stoc