The most oversold stocks in the consumer discretionary 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 overso ...

The most oversold stocks in the consumer discretionary 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 overso ...

Core Viewpoint - Investors are increasingly concerned about an expensive stock market amid rising geopolitical risks and macroeconomic challenges, particularly due to recent Greenland-related tariffs [1] Group 1: Market Conditions - There is a growing fear among investors regarding the stock market's valuation as geopolitical risks and macroeconomic headwinds intensify [1] - The current market environment suggests a potential rotation away from certain sectors, indicating a shift in investment strategies [1] Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry trends [1] - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating his influence and reach within the investment community [1]

Core Viewpoint - The article discusses the phenomenon of heavily shorted stocks, highlighting the reasons traders engage in short selling and the potential for short squeezes to create significant price movements in the market [2][3][4]. Group 1: Reasons for Heavy Shorting - Stocks become heavily shorted when experienced traders and institutional investors believe the company is fundamentally overvalued, anticipating a decline in its price [2]. - High short interest indicates a strong conviction among professional traders that the company faces serious risks [2]. Group 2: Short Squeeze Dynamics - Bullish traders, often retail investors, see high short interest as an opportunity for rapid gains through a short squeeze, which occurs when rising stock prices force short sellers to buy back shares, creating a feedback loop that drives prices even higher [3][4]. - The volatility associated with short squeezes can lead to returns that significantly exceed typical stock movements in a short time frame [4]. Group 3: Most Shorted Stocks - As of January 16, 2026, the top 10 most shorted stocks include: - Choice Hotels International, Inc. (CHH) with a short interest of 56.33% - Lucid Group, Inc. (LCID) at 54.45% - Avis Budget Group, Inc. (CAR) at 52.38% - Other notable companies include PureCycle Technologies, Inc. (PCT), Under Armour, Inc. (UAA), and Revolve Group, Inc. (RVLV) with short interests ranging from 39.22% to 41.89% [5][6][7].

Core Viewpoint - President Trump's unexpected request for credit card companies to set a cap on interest rates at 10% could significantly impact the profitability of the financial sector, leading to a decline in financial stocks and raising concerns among bank executives during earnings calls [1][4]. Financial Sector Impact - The proposed interest rate cap is half of the current average rate on outstanding balances, potentially erasing billions in profits for credit card issuers [1]. - Major banks such as Capital One (COF.US), JPMorgan Chase (JPM.US), and American Express (AXP.US) experienced significant stock declines following the announcement [1]. - Analysts from KBW indicated that if the policy is implemented, it would severely weaken the profitability of credit card issuers and could trigger economic repercussions [4]. Legislative Developments - Trump has called for Congressional support for the Credit Card Competition Act, which targets the nearly $200 billion in swipe fees charged by banks and payment companies, negatively affecting stocks of Visa (V.US) and Mastercard (MA.US) [4]. - Some analysts doubt the feasibility of the interest rate cap, suggesting that the probability of it being enacted is less than 20% due to the lack of legislative support [4]. Broader Economic Effects - Bank executives have warned that the interest rate cap could lead to a significant economic slowdown and push consumers towards unregulated lending sources [5]. - The proposed changes are expected to have ripple effects beyond the financial sector, impacting industries such as airlines and retail, which rely on partnerships with credit card companies for substantial revenue [7]. - Airlines like Delta (DAL.US) and United Airlines (UAL.US) saw stock declines, as did retailers like Macy's (M.US) and Kohl's (KSS.US), due to concerns over the potential impact of the proposed legislation [7].

Core Viewpoint - Kohl's Inc. shares are currently trading at $20.16, reflecting a 1.85% decrease, with a notable 12.16% decline over the past month, but a significant 58.74% increase over the past year [1] Group 1: Company Performance - The stock's short-term performance is questionable, while long-term performance shows substantial growth, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1] - Kohl's has a lower P/E ratio compared to the aggregate P/E of 97.16 for the Broadline Retail industry, suggesting potential undervaluation [4] Group 2: P/E Ratio Analysis - The P/E ratio serves as a tool for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [3] - A lower P/E may indicate that shareholders do not expect future growth or that the company is undervalued, highlighting the need for further analysis [4][7] - The P/E ratio should not be used in isolation; other factors such as industry trends and business cycles also influence stock prices, necessitating a comprehensive approach to investment decisions [7]

Core Viewpoint - The investment outlook for Kohl's Corp. (KSS) has improved, leading to an upgrade to a hold rating due to meaningful improvements in fundamentals, although high valuation prevents a double upgrade [1]. Group 1: Investment Strategy - The investment approach focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1]. - The analysis is based on bottom-up evaluation, examining the fundamental strengths and weaknesses of individual companies [1]. - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1].

Federal Services - Non-essential federal offices, including Social Security Administration field offices and passport agencies, will be closed on New Year's Day [2] - IRS services will also be unavailable, requiring individuals to wait until the following day for assistance [2] Financial Markets - Major U.S. exchanges, including the New York Stock Exchange and Nasdaq, will be closed for trading on New Year's Day, with operations resuming on January 2 [3][6] Mail and Delivery Services - The U.S. Postal Service will not operate on New Year's Day, with only Priority Mail Express deliveries being made [4] - FedEx and UPS will also pause operations, with limited services available for urgent shipments [5] Banking Sector - Most major banks, including Bank of America and Wells Fargo, will be closed for the holiday, although mobile banking and ATMs will remain accessible [7] Retail and Grocery - Major retailers like Walmart and Target will operate on New Year's Day, while grocery stores show a mixed picture with some chains open and others closed [8][9] - Discount grocers such as Aldi and Trader Joe's will remain closed, while convenience stores and pharmacies like CVS and Walgreens will generally stay open [10] Restaurants - Fast-food chains, including McDonald's and Starbucks, will have many locations open, although hours may vary by franchisee [12]

Core Viewpoint - Investors are increasingly focusing on heavily shorted stocks, either to capitalize on further declines in value or to benefit from potential short squeezes [1][3]. Group 1: Characteristics of Heavily Shorted Stocks - A stock is considered "heavily shorted" when a significant number of traders and institutional investors believe it is fundamentally overvalued, leading to expectations of a price decline [2]. - High short interest often indicates a strong conviction among professional traders that the company faces serious risks, while retail traders may see it as an opportunity for rapid gains through a short squeeze [3]. Group 2: Short Squeeze Dynamics - A short squeeze occurs when a stock's price unexpectedly rises, forcing short sellers to buy back shares to cover their positions, which creates a spike in demand and further drives up the price [4]. - The volatility associated with a short squeeze can result in returns that significantly exceed typical stock movements within a short time frame [4]. Group 3: Most Heavily Shorted Stocks - As of December 29, the following stocks are the most heavily shorted, with market caps above $2 billion and free floats above 5 million: - Lucid Group, Inc. (NASDAQ:LCID) - 54.51% - Choice Hotels International, Inc. (NYSE:CHH) - 50.20% - Avis Budget Group, Inc. (NASDAQ:CAR) - 48.80% - Revolve Group, Inc. (NYSE:RVLV) - 43.14% - Medical Properties Trust, Inc. (NYSE:MPW) - 37.13% - MARA Holdings, Inc. (NASDAQ:MARA) - 36.23% - Hims & Hers Health, Inc. (NYSE:HIMS) - 35.22% - TransMedics Group, Inc. (NASDAQ:TMDX) - 35.11% - Kohl's Corporation (NYSE:KSS) - 34.27% - Northern Oil & Gas, Inc. (NYSE:NOG) - 33.27% [5][6].

Group 1: Pricing Strategies - Apple limits discounts to once or twice a year to maintain the perception of value and encourage full-price purchases [1] - Ron Johnson's overhaul of JC Penney aimed to eliminate discounts in favor of a 'fair and square' pricing model, which ultimately failed due to poor consumer response [2][3] - The removal of discounts can alienate a retailer's core fan base, as seen in the struggles of JC Penney under Johnson's leadership [3] Group 2: Kohl's Cash Program - Kohl's Cash is earned during promotions, providing $10 for every $50 spent on qualifying items, and can be redeemed like cash during specified periods [5][7] - The Kohl's Cash program is popular and has been maintained despite industry challenges, contrasting with other retailers that have altered their discount strategies [4] - Kohl's Rewards members earn additional Kohl's Cash on all purchases, enhancing the savings potential for consumers [7]