3 Oversold Stocks Flashing Bullish Reversal Signals

Copart (CPRT), Cooper Companies (COO), and UnitedHealth Group (UNH) are highlighted as potential oversold recovery plays based on their Relative Strength Index (RSI). Copart's RSI fell to 21 after an underwhelming earnings report, while JPMorgan Chase maintains a $55 price target. Cooper Companies' better-than-expected earnings and reaffirmed guidance led to a near 6% jump, potentially triggering a short squeeze. Despite a challenging year, UnitedHealth shows signs of stabilization with analysts reiterating positive ratings, including KeyCorp's $400 price target, suggesting significant upside.

Analysis

The market is presenting potential turnaround opportunities in several oversold equities, as indicated by their Relative Strength Index (RSI) readings. Copart Inc. (CPRT) shares have declined over 21% from all-time highs, pushing its RSI to a deeply oversold 21 following an earnings report in late May that, despite record revenue, failed to meet heightened market expectations; however, JPMorgan Chase maintains a Neutral rating with a $55 price target, suggesting the selloff may be overdone and the current valuation attractive. Cooper Companies Inc. (COO), after months of decline and an RSI in the low 20s, experienced a nearly 6% stock jump on strong volume after delivering better-than-expected earnings and reaffirming full-year EPS growth guidance of 10-15%, potentially initiating a short squeeze given building short interest. UnitedHealth Group Inc. (UNH) has endured a significant downturn in 2025, with its stock falling more than 50% from April highs due to disappointing earnings and negative sentiment, yet it shows signs of stabilization by holding recent support for nearly three weeks, an RSI below 30, and a bullish MACD crossover in late May. Analyst sentiment for UNH remains positive, exemplified by KeyCorp's Overweight rating and a $400 price target, implying over 35% upside and suggesting that downside risk may largely be priced in.

Key Decisions for Investors

• Consider Copart (CPRT) for a potential sharp bounce, given its RSI of 21 and a $55 price target from JPMorgan Chase which is well above current trading levels, indicating the recent 21% selloff might be excessive despite its underwhelming earnings report.
• Evaluate Cooper Companies (COO) as a bullish turnaround candidate, following its strong earnings surprise, reaffirmed 10-15% EPS growth guidance, and the subsequent near 6% share price increase which could trigger a short squeeze.
• For long-term investors, UnitedHealth (UNH) may present an attractive risk-reward at current levels, considering its stabilization above recent lows after a 50% decline from April highs, a bullish MACD crossover, and significant upside potential indicated by KeyCorp's $400 price target.
• Monitor these oversold stocks for confirmation of reversal through continued positive price momentum and volume, as RSI levels below 30 often signal potential for short-term recovery.