Oversold Consumer Stocks May Be Ready for a Rebound
The consumer discretionary sector may offer opportunities to buy undervalued companies as some stocks have become oversold. The Relative Strength Index (RSI) is a momentum indicator that compares a stock's strength on days when prices rise to its strength on days when prices fall. An asset is typically considered oversold when the RSI is below 30.
Home Depot Inc (NYSE:HD) has an RSI value of 27.3 and fell around 12% over the past month, with a 52-week low of $287.34. Analyst Zhihan Ma maintained Home Depot with a Market Perform and lowered its price target from $354 to $344.
McDonald's Corp (NYSE:MCD) has an RSI value of 24.8 and fell around 11% over the past month, with a 52-week low of $232.06. Analyst Jacob Aiken Phillips maintained McDonald's with a Sell and lowered its price target from $250 to $230.
Penske Automotive Group Inc (NYSE:PAG) has an RSI value of 26.9 and fell around 7% over the past month, with a 52-week low of $140.12. The company posted upbeat quarterly results in July, with Chair Roger Penske saying 'In the second quarter of 2026, our diversified business delivered over 125,000 retail automotive units and more than 5,400 commercial truck units.'