US stocks, as represented by the benchmark S&P 500 index, have done exceptionally well since the start of 2025. Still, a handful of them are currently in the oversold territory.
For investors, this could mean opportunity, particularly because a few of these oversold names are now flashing buy signals.
Plus, with investors now betting on a possible rate cut in September, technical indicators suggest three heavily sold-off names- Keurig Dr Pepper, Charter Communications, and Hormel Foods – are poised for a significant rebound ahead.
Each has dipped below the critical “30” threshold on the 14-day Relative Strength Index (RSI), a level often associated with oversold conditions and potential upside.
Keurig Dr Pepper Inc (NASDAQ: KDP)
Keurig Dr Pepper has taken a steep tumble, shedding over 17% this week following the announcement to acquire Dutch coffee giant JDE Peet’s in a deal valued at $18 billion.
The market reacted harshly, with HSBC downgrading the stock, citing the acquisition’s hefty price tag and increased leverage.
Analyst Sorabh Daga noted, “We don’t think KDP needed to lever itself up to 6-8x net debt/reported EBITDA to exit the Keurig coffee business.”
Yet, the deal isn’t without merit. The company expects $400 million in cost savings over 3 years and plans to split its beverage and coffee divisions into separate public entities.
With an RSI of 29 and Wall Street analysts projecting a 29% upside on average, KDP shares may be brewing a comeback.
Charter Communications Inc (NASDAQ: CHTR)
Charter Communications, the parent of Spectrum internet services, has seen its shares slide more than 4% this week, continuing a trend of investor skepticism.
Despite secular headwinds, Bernstein recently upgraded the stock to “outperform,” citing its undervalued price.
Analyst Laurent Yoon acknowledged the challenges but remained optimistic: “When something is cheap, it’s cheap for a reason… but we are looking ahead to CHTR’s narrative for ’26.”
With an RSI signaling oversold territory and the mean price target suggesting a potential 54% rally, Charter Communications stock may be nearing a turning point.
If the company can navigate its structural issues, the current weakness could represent a compelling entry point.
Hormel Foods Corp (NYSE: HRL)
Hormel Foods, known for its packaged meats and pantry staples, suffered a sharp 13% drop after disappointing third-quarter earnings.
The miss rattled investors, pushing the stock into oversold territory.
While the results were underwhelming, Hormel’s long-term fundamentals remain intact, supported by its strong brand portfolio and defensive positioning in consumer staples.
The RSI now sits below 30, and analysts see room for recovery as the company adjusts its pricing strategy and cost structure.
For contrarian investors, Hormel stock’s recent plunge may offer a rare opportunity to buy a stable name at a big discount – especially if inflationary pressures ease and margins begin to normalize.
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