The most oversold stocks in the materials 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.



<h3>American Vanguard Corp (NYSE:AVD)</h3>



<ul>
<li>On March 16, American Vanguard posted downbeat quarterly results. Dak Kaye, CEO of American Vanguard, stated “2025 was a pivotal year for American Vanguard as we continue to make progress on the execution of our business improvement plans. Initiatives that we implemented early last year have resulted in increased margins, in an agricultural economy that is just beginning to recover. While we have accomplished much in 2025, we expect even better results in 2026.” The company's stock fell around 43% over the past month and has a 52-week low of $2.05.</li>



<li>RSI Value: 27</li>



<li>AVD Price Action: Shares of American Vanguard fell 2.5% to close at $2.33 on Thursday.</li>
</ul>



<h3>Tantech Holdings Ltd (NASDAQ:TANH)           </h3>



<ul>
<li>On March 31, Tantech Holdings announced that it priced and closed its $2.15 million registered direct offering. The company's stock fell around 54% over the past month and has a 52-week low of $0.32.</li>



<li>RSI Value: 26.7</li>



<li>TANH Price Action: Shares of Tantech gained 1.4% to close at $0.37 on Friday.</li>



<li>Benzinga Pro’s charting tool helped identify the trend in TANH stock. </li>
</ul>



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<h3>Mercer International Inc (NASDAQ:MERC)</h3>



<ul>
<li>On Feb. 12, Mercer Intl posted weaker-than-expected quarterly results. Mr. Juan Carlos Bueno, Chief Executive Officer, said, “To address the challenging hardwood pulp environment that has weighed on our Peace River mill’s results, we have engaged with all stakeholders and several initiatives have been underway. These include shifting production mix at the mill further towards softwood and engaging government on accretive opportunities surrounding energy and carbon capture. We are considering all options in respect of this asset.” The company's stock fell around 25% over the past month and has a 52-week low of $1.12.</li>



<li>RSI Value: 23.9</li>



<li>MERC Price Action: Shares of Mercer International fell 13.9% to close at $1.12 on Friday.</li>



<li>Benzinga Pro’s news feature notified of a potential breakout in MERC shares.</li>
</ul>



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Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.



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MERC

The materials sector shows potential for investment as several stocks are currently oversold, indicated by an RSI below 30. Key companies include American Vanguard, Tantech Holdings, and Mercer International, all experiencing significant stock declines recently. American Vanguard's stock fell 43% to $2.33, Tantech's by 54% to $0.37, and Mercer's by 25% to $1.12. These stocks may present buying opportunities as the market recovers.

Top 3 Materials Stocks That May Rocket Higher This Month