Top 3 Consumer Stocks Which Could Rescue Your Portfolio In May

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 oversold players in this sector, having an RSI near or below 30.

American Eagle Outfitters Inc (NYSE:AEO)

• On May 18, TD Cowen analyst Jonna Kim maintained American Eagle with a Hold and lowered the price target from $19 to $18. The company's stock fell around 25% over the past month and has a 52-week low of $9.27.
• RSI Value: 29.6
• AEO Price Action: Shares of American Eagle fell 2.8% to close at $14.86 on Monday.
• Edge Stock Ratings: 16.10 Momentum score with Value at 93.40.

Abercrombie & Fitch Co (NYSE:ANF)   

• On May 18, JP Morgan analyst Matthew Boss maintained Abercrombie & Fitch with a Neutral and lowered the price target from $110 to $107. The company's stock fell around 26% over the past month and has a 52-week low of $65.45.
• RSI Value: 29.5
• ANF Price Action: Shares of Abercrombie & Fitch rose 2% to close at $71.95 on Monday.
• Benzinga Pro’s charting tool helped identify the trend in ANF stock.

Gap Inc (NYSE:GAP)

• On May 18, TD Cowen analyst Jonna Kim maintained Gap with a Buy and cut the price target from $32 to $26. The company's stock fell around 24% over the past month and has a 52-week low of $18.68.
• RSI Value: 29.1
• GAP Price Action: Shares of Gap fell 1.5% to close at $20.73 on Monday.
• Benzinga Pro’s signals feature notified of a potential breakout in GAP shares.

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

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