There’s nothing better than feeling you’ve found a bargain or are getting a good deal, and it’s no different when it comes to stocks. One of the most popular technical indicators for helping to do this is the Relative Strength Index (RSI). 

Every stock has one. It works by considering a stock’s recent performance over the past 14 trading days and spitting out a number ranging from 0 to 100. An RSI reading of more than 70 suggests overbought conditions, while a reading below 30 indicates oversold conditions. The more extreme the reading, the more pronounced the suggested market condition.

With equities, in general, having turned down for some of their worst weeks of the year so far, many previously high-flying stocks have RSI readings verging on the oversold. For example, the benchmark S&P 500 index has gone from having an RSI reading in the upper 60s at the start of the month to one now in the lower 30s. 

Investor sentiment has cooled considerably after a surprise uptick in inflation, but there are no reasons to be panicking just yet. If anything, this selloff will be a healthy correction in what’s otherwise a solid uptrend that still has a ton of room left to run. With that in mind, let’s take a look at 3 stocks with particularly appealing RSI readings that point to entry opportunities. 

Having tagged an all-time high as recently as February, tech titan Salesforce is the perfect example of a high-performing stock that’s become rapidly oversold in the past few weeks. An RSI reading of 29 confirms its oversold status, as do the multitude of analyst updates on the stock this month alone.

Stifel Nicolaus and the Needham & Company team have reiterated their Buy rating on Salesforce shares. Just last week, the Royal Bank of Canada rated them Outperform and boosted their price target to $350. This week alone, JMP Securities and Wolfe Research have done the same, both reiterating their Outperform rating on Salesforce shares, with Wolfe giving them a street-high price target of $365. 

Considering Salesforce closed just above $270 last night, that’s pointing to an upside of some 35%, and investors should be getting excited. 

Though it hadn’t managed to top 2021’s high, Adobe is another tech titan that had a multi-year rally cut short last month. Since logging more than 130% in gains from 2022’s low through February of this year, its shares have been on the back foot. They’re currently down 25% and have an RSI reading of just 32. 

However, like with Salesforce, they’ve had a run of analyst upgrades that all point to the same thing; this is starting to become a serious buying opportunity. Over the past few weeks alone, Evercore ISI, Royal Bank of Canada, and Mizuho have reiterated their Outperform rating on Adobe shares. 

Last up is Lamb Weston, one of the world’s largest food producers and makers of frozen French fries. Their shares were verging on an all-time high last quarter when a botched internal software implementation  on their earnings. 

This is quite a rare event for a company to have to deal with, but the effect on Lamb Weston’s shares has been enormous. The transition from one enterprise resource planning (ERP) system to another did not go smoothly and instead resulted in a temporary loss of visibility into distribution-ready inventories. This meant customer orders went unfinished on a scale that contracted Lamb Weston’s margins to the extent that $72 million was shaved off their net income for fiscal Q3. 

Shares fell as much as 30% from their pre-earnings peak but are already consolidating and starting to turn north once again. This has helped lift the stock’s RSI from extremely oversold conditions in the mid-teens, but at 28, it’s still looking like a bargain. A run of Buy and Outperform ratings from analysts in recent weeks has only strengthened the likelihood of this being a temporary, albeit embarrassing, blip, and investors should watch for a potential and rapid bounce back. 

Before you consider Adobe, you’ll want to hear this.

While Adobe currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.