3 Oversold Stocks Ready to Rebound in 2026
Yahoo Finance·2026-01-12 14:17

Core Insights - The S&P 500 experienced its third consecutive gain of over 15% in 2025, although not all stocks performed well, particularly after the tariff re-rating in April [2] - Market fluctuations can lead to previously underperforming stocks becoming attractive again, with a focus on three stocks that recently triggered a key technical signal indicating potential recovery in 2026 [3][6] Technical Analysis - The Relative Strength Index (RSI) is a widely used technical analysis tool that measures the momentum of stock price trends, providing insights across various timeframes and asset classes [3][4] - An RSI reading above 70 indicates that a stock is 'Overbought', suggesting a potential for a price correction, while a reading below 30 indicates 'Oversold' conditions, where stocks may be undervalued and poised for a rebound [4][5] - The RSI is not infallible, and while it can signal potential buying opportunities, further investigation is necessary to understand the underlying reasons for a stock's oversold status [5]