Top 3 Energy Stocks That May Rocket Higher This Quarter

The most oversold stocks in the energy 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.

Arch Resources Inc ARCH

• On July 25, Arch Resources posted weaker-than-expected quarterly earnings. “During the quarter, the Arch team moved quickly and nimbly in the wake of the tragic bridge collapse in Baltimore, taking steps to facilitate the continuing flow of our coking coal products to steelmakers and redirecting volumes to our 35-percent-owned DTA facility,” said Paul A. Lang, Arch’s CEO. “Through these efforts, the metallurgical segment – in collaboration with our railroad and terminal partners – succeeded in shipping more than two million tons of coking coal even as Baltimore’s deepwater channel remained closed throughout the first 70 days of the quarter before all restrictions were lifted on the shipping channel on June 10.” The company's stock fell around 21% over the past month and has a 52-week low of $125.90.
• RSI Value: 28.15
• ARCH Price Action: Shares of Arch Resources fell 0.7% to close at $128.53 on Tuesday.
• Benzinga Pro's real-time newsfeed alerted to latest ARCH news.

Nextdecade Corp NEXT       

• On Aug. 6, NextDecade said the U.S. Court of Appeals issued an order to revoke the company’s authorization to operate its Rio Grand LNG Facility. The company's stock fell around 38% over the past month. It has a 52-week low of $4.03.
• RSI Value: 23.51
• NEXT Price Action: Shares of Nextdecade gained 3.7% to close at $5.05 on Tuesday.
• Benzinga Pro’s charting tool helped identify the trend in NEXT stock.

Chesapeake Energy Corp CHK

• On July 29, Chesapeake Energy reported quarterly earnings of 1 cent per share, a 98.44% decrease from earnings of 64 cents per share from the same period last year. The company reported quarterly sales of $505 million, missing the analyst consensus estimate of $787.14 million by 35.84%. "We continue to execute our business as we prudently manage current market conditions and prepare for our pending combination with Southwestern. We remain focused on operational improvements and enhancing capital efficiency. The efforts of our team have positioned us to lower our 2024 capital and production expense guidance by $50 million and approximately 8%, respectively," said Nick Dell'Osso, Chesapeake's CEO. The company's shares fell around 14% over the past month and has a 52-week low of $69.42.
• RSI Value: 29.44
• CHK Price Action: Shares of Chesapeake Energy fell 1.5% to close at $72.25 on Tuesday.
• Benzinga Pro’s signals feature notified of a potential breakout in CHK shares.

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