Top 3 Defensive Stocks That Could Lead To Your Biggest Gains In September

Author: Avi Kapoor | September 05, 2024 08:57am

The most oversold stocks in the consumer staples 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, according to Benzinga Pro.

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

Walgreens Boots Alliance Inc (NASDAQ:WBA)

• On Sept. 4, B of A Securities analyst Allen Lutz maintained Walgreens Boots Alliance with an Underperform and lowered the price target from $11 to $7.5. The company's stock fell around 19% over the past month and has a 52-week low of $8.62.
• RSI Value: 25.14
• WBA Price Action: Shares of Walgreens fell 3.6% to close at $8.65 on Wednesday.
• Benzinga Pro's real-time newsfeed alerted to latest WBA news.

Dollar General Corp (NYSE:DG) 

• On Aug. 29, Dollar General reported worse-than-expected second-quarter results and lowered its 2024 guidance. The retail behemoth reported second-quarter earnings per share of $1.70, missing the analyst consensus of $1.78. Quarterly sales of $10.21 billion (+4.2% year over year) missed the street view of $10.368 billion.. The company's stock fell around 35% over the past five days. It has a 52-week low of $79.36.
• RSI Value: 16.90
• DG Price Action: Shares of Dollar General fell 3.2% to close at $81.08 on Wednesday.
• Benzinga Pro’s charting tool helped identify the trend in DG stock.

Dollar Tree Inc (NASDAQ:DLTR)

• On Sept. 4, Dollar Tree reported worse-than-expected second-quarter 2024 earnings. The discount variety stores chain reported an adjusted EPS of $0.67, missing the consensus of $1.04, and down 26.4% year over year. Chief Financial Officer Jeff Davis added, “Our adjusted EPS of $0.67 was $0.38 below the midpoint of our previous outlook range. While the vast majority of this variance was attributable to an adjustment of our general liability accrual, a portion was attributable to a comp shortfall, which reflected the increasing effect of macro pressures on the purchasing behavior of Dollar Tree’s middle- and higher-income customers.”. The company's shares fell around 34% over the past five days and has a 52-week low of $60.82.
• RSI Value: 11.87
• DLTR Price Action: Shares of Dollar Tree dipped 22.2% to close at $63.56 on Wednesday.
• Benzinga Pro’s signals feature notified of a potential breakout in DLTR shares.

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Posted In: DG DLTR WBA