Top 3 Materials Stocks That Could Lead To Your Biggest Gains This Quarter

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, according to Benzinga Pro.

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

Snow Lake Resources Ltd (NASDAQ:LITM)

• On April 30, Snow Lake Resources announced a 1-for-13 reverse stock split. The company's stock fell around 37% over the past month and has a 52-week low of $0.15.
• RSI Value: 28.3
• LITM Price Action: Shares of Snow Lake Resources fell 26.4% to close at $0.32 on Wednesday.
• Edge Stock Ratings: 29.40.

Mercer International Inc (NASDAQ:MERC)     

• On April 22, CIBC analyst Hamir Patel maintained Mercer with a Neutral rating and lowered the price target from $7 to $6. The company's stock fell around 24% over the past month and has a 52-week low of $4.35.
• RSI Value: 27.4
• MERC Price Action: Shares of Mercer International dipped 3% to close at $4.47 on Wednesday.
• Benzinga Pro’s charting tool helped identify the trend in MERC stock.

Sonoco Products Co (NYSE:SON)

• On April 29, Sonoco Products reported worse-than-expected first-quarter financial results. “Our first quarter results demonstrated the strength of the new Sonoco as our global team achieved record top-line and adjusted EBITDA performance, growing 31% and 38%, respectively, while adjusted earnings per share rose 23% despite higher-than-expected interest expense, taxes and the negative impact of currency exchange rates,” said Howard Coker, President and Chief Executive Officer. The company's stock fell around 14% over the past month and has a 52-week low of $39.46.
• RSI Value: 25.2
• SON Price Action: Shares of Sonoco Products fell 12.3% to close at $41.00 on Wednesday.
• Benzinga Pro’s signals feature notified of a potential breakout in SON shares.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

Read This Next:

• Jim Cramer: This Tech Stock Is ‘Not Great, Not Bad’, Alaska Air Can Still Go Lower

Photo via Shutterstock