Everybody loves finding a bargain or getting a good deal, and it's no different when it comes to stocks. One of the most popular technical indicators for helping investors find these 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 extremely overbought conditions, while a reading below 30 suggests the opposite. The more extreme the reading, the more extreme the suggested condition of the stock. 

With the benchmark S&P 500 index back up around all-time highs since the Fed confirmed it was cutting rates, investor sentiment is clearly still bullish. This makes it all the more interesting when you then see a stock selling hard. Any indication that the selling might be verging on overdone or that the bears are running out of steam can mean a quick bounce is in store. With that in mind, here are three stocks with RSI readings that suggest they're extremely oversold.  

Wall Street Sees Opportunity in Humana’s Oversold Condition

Humana Inc. (NYSE: HUM), the for-profit health insurance company, has been selling off for over two years. Considering the gains the broader market has registered in this timeframe, the Louisville-based company's underperformance will be a bitter pill. 

Its shares were down more than 50% in that timeframe and went back into trading at 2017 levels. Despite beating analyst expectations in its Q2 earnings report over the summer, things have only gotten worse, with yesterday's negative update on membership numbers the latest headwind to deal with. 

At one point yesterday, Humana shares were trading more than 30% off where they closed last week, resulting in an RSI reading of just 15. This is the stock's lowest reading in 16 years, a fact that hasn't gone unnoticed by Wall Street. This isn't a company to be holding for the long run, but the strong buying action all the way into yesterday's close suggests there's a fast and hard bounce kicking off that can be capitalized on. 

Elevance Health's Oversold RSI Suggests Significant Upside Potential

Though not quite as extreme as Humana's, Elevance Health, Inc (NYSE: ELV)'s RSI reading of 26 does suggest the Indianapolis health insurer is extremely oversold.

Compared to Humana, however, there's a lot more to like about Elevance for the long term, not least the fact that the company was trading at all-time highs as recently as July. 

While its stock has been softening since the first week of September, it gapped down at yesterday's open. This was almost certainly off the back of Humana's negative update, and already, it's being treated as an entry opportunity. 

Elevance shares gained into Wednesday's close and were trading up in Thursday's pre-market session. Considering how low their RSI still is, however, there's clearly a ton more room for them to run. 

BioMarin Stock Holds Firm After Sharp Decline, Bulls Eyeing Comeback

BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) shares of biotech stock have been effectively range-bound since 2016.

Pharmaceutical companies often experience this, as they depend heavily on positive results from drug and treatment trials rather than more standard fundamental performance for their stock's direction. 

September gave a good example of just how exposed these companies can be, even to updates from their peers in this regard. When positive results from an Ascendis Pharma A/S (NASDAQ: ASND) trial were announced, they were seen as a threat to BioMarins' ongoing Voxzogo trials. 

BioMarin shares lost more than 20% immediately, but the bears could not take it any lower. They have been consolidating since then, which suggests the bulls could soon be back in control. With BioMarin's RSI still only at 26, though, while its MACD edges closer to a bullish crossover, this one has all the feel of a comeback rally.