Top 3 Tech Stocks That May Explode In Q4

The most oversold stocks in the information technology 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.

Himax Technologies Inc (NASDAQ:HIMX)

• On Nov. 5, Himax Technologies reported mixed third-quarter financial results and issued fourth-quarter guidance below estimates. “On automotive business, the year started on a soft note in Q1, followed by robust inventory replenishment in Q2 and Q3, as certain panel makers accelerated IC purchases to meet surging orders from Chinese automakers expanding overseas. In Q4, however, shortly after China’s National Day holidays in early October, we saw a sudden and sizable decline in demand among the customers that had purchased aggressively in prior quarters. We believe the recent significant reduction in our Q4 forecasts reflect in part Chinese automakers’ earlier, overly aggressive export expectations, along with their growing concerns over inventory levels across distribution channels,” said Mr. Jordan Wu, President and Chief Executive Officer of Himax. The company’s stock fell around 36% over the past month and has a 52-week low of $6.85.
• RSI Value: 29.3
• HIMX Price Action: Shares of Himax jumped 10.6% to close at $8.49 on Friday.
• Edge Stock Ratings: 6.67 Momentum score with Value at 65.88.

Cerebras Systems Inc (NASDAQ:CBRS)

• On Nov. 2, UBS analyst Timothy Arcuri maintained Cerebras Systems with a Buy and lowered the price target from $330 to $250. The company’s stock fell around 45% over the past month and has a 52-week low of $83.50.
• RSI Value: 29.2
• CBRS Price Action: Shares of Cerebras gained 9.8% to close at $89.68 on Friday.
• Benzinga Pro’s charting tool helped identify the trend in CBRS stock.

Unusual Machines Inc (NYSE:UMAC)

• On Nov. 5, Unusual Machines posted a wider-than-expected quarterly loss. The company’s stock fell around 43% over the past month and has a 52-week low of $7.24.
• RSI Value: 28.6
• UMAC Price Action: Shares of Unusual Machines gained 10.7% to close at $11.90 on Friday.
• Benzinga Pro’s signals feature notified of a potential breakout in UMAC shares.

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