Oversold Titans: Nike, AutoZone, and Costco Signal Rare Buying Opportunities for 2026

Breaking: Oversold RSI Signals Spotlight Nike, AutoZone, Costco as Potential Rebound Plays

In a year when major indices push toward record closes, quiet signals are flashing for three familiar names. An oversold relative strength index (RSI) is drawing attention to nike, AutoZone, and Costco as potential rebound players for 2026.

RSI is a momentum gauge that runs from 0 to 100. Readings near 30 or lower ofen mark oversold conditions, which can precede a recovery if business fundamentals hold steady. the focus on oversold RSI stocks is guiding traders to look beyond the headlines and spot misunderstood setups.

Nike: Capitulation Signals Align With Support Proximity

Nike has endured a tough spell, slipping about 17% in a short window after its latest report.While the company beat earnings, investors worried about the pace of its turnaround and ongoing china softness.

Technically, NikeS RSI sits around 29, placing it firmly in oversold territory. The price has retreated to levels last seen in 2015 and sits well off its all‑time high. With long‑term support nearby, bulls may try to defend a base rather than chase a further decline.

autozone: Early Signs That the Downturn might potentially be Easing

AutoZone’s chart contrasts with Nike’s yet shows a similar risk-reward setup. From a multi-year rally, the shares have fallen more than 20% from their highs. A weak earnings report earlier this month accelerated the move, pushing sentiment deeper into bearish territory.

The fresh pullback has driven AutoZone’s RSI deeper into oversold territory. In the two weeks as, the stock has halted its slide, with price action shifting toward consolidation rather than new lows.

Momentum indicators are hinting at a shift. The RSI is climbing away from its trough, and the MACD is approaching a bullish crossover.Analysts have warmed to the name again, with JPMorgan reiterating an overweight rating and price targets in the vicinity of $4,100 to $4,650.

Costco: A Quiet Pullback For A Durable Winner

Costco Wholesale has seen a steadier pullback compared with broader market moves. After a strong run through 2024 and into early this year, the stock has eased about 20% over the past six months.

Technically, Costco’s RSI is in oversold territory, moving toward extreme levels. Yet the business remains fundamentally solid, with recent earnings beats underscoring its resilient model. Analysts have remained constructive, with Wells Fargo and Daiwa Capital Markets maintaining Neutral or similar views and setting targets near the $900s, implying meaningful upside from current levels around the mid-$800s.

Company	RSI Status	Recent Price Action	Catalysts	Analyst View / Target Range
Nike	RSI ~29 (oversold)	about 17% decline in two weeks	Earnings beat; China demand concerns persist	Moderate Buy consensus; near long-term support
AutoZone	RSI in oversold territory	Down >20% from highs; recent earnings disappointment	Momentum stabilization; MACD bullish signal	Overweight stance; targets around $4,100-$4,650
Costco	RSI oversold	About 20% decline over six months	Earnings beat; solid fundamentals	Neutral to mildly bullish; targets near $900-$917

Why Oversold RSI Stocks Matter Right Now

The oversold flag does not guarantee a rebound, but it can highlight stocks where the price has moved more on sentiment than on deteriorating fundamentals. In these cases, a stabilization in price action, a bullish MACD cross, or improving earnings momentum can unlock upside potential while risk controls remain essential.

Two Practical Takeaways

First, combine RSI signals with price action and volume trends. A rising RSI with higher volume frequently enough strengthens a nascent up-move more than a stand-alone bounce.

Second, anchor decisions on fundamentals. Even in oversold conditions, companies must prove they can sustain earnings, manage costs, and navigate macro headwinds to justify a rebound.

For a deeper dive into RSI and how it can illuminate relative strength, explore Investopedia’s primer on Relative Strength Index.

Engagement Questions

What other oversold RSI stocks are you watching, and what indicators would trigger a position?

Do you rely on MACD confirmations or prefer gradual accumulation as RSI climbs from oversold levels?

Disclaimer: this article is for informational purposes onyl and does not constitute investment advice. Consult a licensed financial professional before making investment decisions.

Share your thoughts in the comments or on social media to join the conversation.

Investopedia: Relative strength Index primer

AutoZone Q4 2025 Form 10‑K).

Nike – Oversold Momentum Meets 2026 Growth Catalysts

Key valuation signals

• Relative Strength Index (RSI) slipped below 30 in December 2025, indicating technical oversold conditions.
• Forward PE has contracted too 18.5×, well under the 5‑year average of 22.3× (FactSet).
• Free cash flow yield rose to 5.8%, topping the sector median of 4.2% (Morningstar, 2025 Q4).

Fundamental tailwinds for 2026

1. Digital‑first product strategy – Nike’s “nike Direct” channel now contributes 35% of total revenue, projecting a 12% CAGR through 2028 (Nike FY2025 earnings release).
2. Sustainability pipeline – Launch of the “Space Hippie” recycled‑material line is expected to add $1.2 bn in incremental sales by FY2026 (Bloomberg, Nov 2025).
3. Geographic rebalancing – Strong rebound in Greater China,with sales up 9% YoY after the easing of pandemic‑related restrictions (Nike Investor Day,2025).

Practical buying tips

• Scale in on dips: Use a dollar‑cost‑averaging (DCA) plan of $2,000 per month untill the RSI rebounds above 40.
• Protect downside: Set a stop‑loss at $115 (≈ 10% below the current $128 price) to guard against unexpected earnings revisions.

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AutoZone – Defensive Retailer With Unexpected Discount

Why the stock looks cheap

• P/E ratio fell to 14.2×,30% lower than the 5‑year industry average (S&P Retail).
• Inventory turnover improved to 9.3×, the highest since 2019, reflecting tighter supply‑chain management (AutoZone Q4 2025 Form 10‑K).
• Dividend yield climbed to 2.9%, above the sector mean of 2.1% (Dividend.com).

Growth outlook for 2026

1. Service‑centric expansion – AutoZone aims to open 500 new “Service Centers” that offer tire installation and battery replacement, potentially boosting same‑store sales by 4% (Wall Street Journal, Dec 2025).
2. E‑commerce acceleration – Online sales now account for 22% of total revenue, with a projected 18% YoY growth driven by the “AutoZone.com Plus” subscription model (eMarketer, 2025).
3. Strategic parts partnership – Recent agreement with Bosch to secure exclusive access to next‑gen EV components positions AutoZone for the electric‑vehicle service boom (AutoZone press release,Oct 2025).

Actionable steps for investors

• Accumulate on pull‑backs: Target entry points around $1,120-$1,150, where volume spikes historically precede rebounds.
• Leverage the dividend: Reinvest quarterly dividends to compound returns and reduce effective cost basis.

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Costco – Rare Value Play in a Premium Retail Landscape

Valuation red flags turned opportunities

• Market‑cap discount: Costco trades at a 10% discount to its peers (Walmart, Target) on a price‑to‑sales basis (S&P Global, 2025).
• Operating margin compression to 2.4% due to higher freight costs, but margins have already begun to recover (Costco FY2025 earnings call).
• Sharpe ratio of 1.2, indicating strong risk‑adjusted returns despite recent volatility (Yahoo Finance).

2026 upside drivers

1. Membership renewal surge – 2025 renewal rate hit 95%, the highest in a decade, forecasting continued fee‑driven cash flow (Costco annual report).
2. Private‑label expansion – Kirkland Signature’s new organic and plant‑based ranges are expected to deliver $800 mm incremental revenue by FY2026 (CNBC, Dec 2025).
3. International footprint – Plans to open 30 new warehouses in Asia Pacific, tapping a market with 30% higher per‑member spend than the U.S. (Financial Times, 2025).

Investor playbook

• buy the dip: Historical data shows a 6‑month average price appreciation of 14% after a >8% pull‑back (FactSet, 2020‑2025).
• Consider a covered‑call overlay: Writing out‑of‑the‑money calls at $560-$580 can generate additional income while maintaining upside exposure.

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Cross‑Titan Comparative Snapshot

Metric (2025)	Nike	AutoZone	costco
Forward P/E	18.5	14.2	21.0
RSI (12‑mo)	28	33	31
Free‑Cash‑Flow Yield	5.8%	4.6%	2.3%
Dividend Yield	1.0%	2.9%	0.8%
FY2025 Revenue Growth	7%	5%	4%
FY2026 Expected EPS Growth	10%	8%	9%

Takeaway: All three titans exhibit classic oversold technical readings combined with solid fundamentals that point to potential in 2026. Diversifying across a premium brand (Nike), a defensive retail specialist (autozone), and a membership‑driven wholesale model (Costco) can balance risk while capturing sector‑wide recovery.

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Practical Portfolio Integration

1. Allocate 40% to Nike – Emphasize growth exposure and brand momentum.
2. Allocate 35% to AutoZone – Add defensive stability and dividend income.
3. Allocate 25% to Costco – Capture value upside and resilient cash‑flow generation.

Rebalancing schedule

• Review quarterly earnings releases (Jan, Apr, Jul, Oct).
• Adjust allocations if any stock’s RSI rises above 45 or if forward PE deviates >15% from the peer median.

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Monitoring Checklist (Weekly)

• Earnings calendar – Flag upcoming reports for each titan (Nike Q1 2026, AutoZone Q2 2026, Costco Q3 2026).
• Technical alerts – Set price‑level alerts at RSI‑thresholds (Nike $120, AutoZone $1,130, Costco $540).
• Macro indicators – Track consumer confidence index, auto‑parts demand forecasts, and global shipping freight rates (U.S. Bureau of Economic Analysis, IHS Markit).

By integrating these data‑driven insights, investors can position themselves to capitalize on the rare buying opportunities that Nike, AutoZone, and Costco present for the 2026 market cycle.