The September sell-off in Dow Jones and S&P 500 stocks is getting so intense, some wonder if it's already overdone.
Nine Dow stocks, including Nike, 3M and American Express, are now in "extreme oversold" territory, says Bespoke Investment Group. This means they're trading for two standard deviations, a measure of volatility, from their average prices in the past 50 days.
"Some of these names have been so weak lately that they're 'falling off the page,'" Bespoke said.
The Dow's September Struggles
It's been a rough month for stocks, including even the giants in the Dow.
Since peaking this year on Aug. 1, the SPDR Dow Jones Industrial Average ETF Trust is down 5.6%. But that masks some of the pain even holders of these giants are feeling. Seven of the stocks in the Dow are 10% or more from August. And a surprising number of Dow stocks, half, are now down for the entire year.
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Biggest Oversold Dow Stocks
Nike is miles ahead when it comes to being oversold. The stock's nearly 19% plunge from its 50-day moving average is the largest in the Dow, Bespoke says.
Selling in the sneaker maker's shares is getting uncomfortable. They're now down more than 23% just this year. The concerns, though, aren't showing up yet in estimates. Analysts still think the company's adjusted profit per share will rise nearly 14% in the current fiscal year ended in May.
3M is another Dow stock being taken to the woodshed. Shares are down more than 9% from their 50-day moving averages. Here, though, there's fire and not just smoke. Product liability claims plus slowing growth is hurting. The company's adjusted profit per share is seen sinking more than 12% in 2023.
Savvy investors know to buy stocks showing strength. And none of these Dow stocks are inspiring confidence. But at some point, the selling could ease. You'll want to know how to keep a list and know when to buy.
"Just as stocks don't stay overbought forever, they don't stay oversold forever either (unless they go out of business)," Bespoke said.
Most Oversold Dow Stocks
Furthest from their 50-day moving averages
| Company | Symbol | Ch. From 50-day | Sector |
|---|---|---|---|
| Nike | -12.38% | Consumer Discretionary | |
| 3M | -9.16% | Industrials | |
| American Express | -7.51% | Financials | |
| McDonald's | -6.83% | Consumer Discretionary | |
| Home Depot | -6.63% | Consumer Discretionary | |
| Coca-Cola | -6.27% | Consumer Staples | |
| Dow | -5.34% | Materials | |
| Visa | -4.61% | Financials | |
| Procter & Gamble | -3.98% | Consumer Staples |
