When stocks get beaten down hard enough, something interesting happens. They start to look less like disasters and more like opportunities. That's the premise behind hunting for oversold stocks, anyway, and right now the energy sector has a few names flashing some pretty extreme technical signals.
The Relative Strength Index, or RSI, is a momentum indicator that compares how a stock performs on up days versus down days. Think of it as a measure of whether buyers or sellers have been winning lately. When the RSI drops below 30, technical analysts generally consider a stock oversold, meaning it might have been punished too severely and could be due for a bounce. Here are three energy stocks that have hit that threshold and might be worth watching in December.
Pedevco Corp (PED)
Pedevco Corp (PED) hasn't had the easiest time lately. The company posted disappointing quarterly sales on November 17, and CEO J. Douglas Schick acknowledged the headwinds: "While Q3 was a challenging quarter given commodity price pressure and the fact that the majority of our 2025 development plan comes online in the back end of the year, we are very excited about the Company's future given the significant number of wells coming online in Q4 2025 and early 2026, and the significantly increased scale, production and development opportunities the Company expects to realize as a direct result of our recently announced merger with certain portfolio companies formerly controlled by Juniper Capital that closed on October 31, 2025."
That's a lot of corporate speak, but the gist is: things are tough now, but management thinks the pipeline looks promising. The stock has fallen around 27% over the past month and recently hit a 52-week low of $0.43. Shares closed at $0.45 on Friday, down 6.2% for the day.
RSI Value: 29.8
Momentum Score: 10.77
Geospace Technologies Corp (GEOS)
Geospace Technologies Corp (GEOS) reported a loss of 71 cents per share for its fourth quarter on November 20. CEO Richard "Rich" Kelley tried to spin the mixed results positively, noting that "The mixed fiscal year performance across the market segments continues to reinforce our vision of diversification and innovation for the company."
Translation: not all parts of the business are struggling equally, which is why they're betting on having multiple revenue streams. The stock has been hammered, falling roughly 50% over the past month and touching a 52-week low of $5.52. But Friday brought some relief, with shares jumping 18.4% to close at $13.17. That kind of pop is exactly what oversold stock hunters are looking for, though whether it's a dead cat bounce or the start of a real recovery remains to be seen.
RSI Value: 29
Houston American Energy Corporation (HUSA)
Houston American Energy Corporation (HUSA) announced on November 24 that it completed an $8 million registered direct offering to institutional investors. That's typically a sign that a company needs cash and is willing to dilute existing shareholders to get it. The market hasn't loved the move. The stock has cratered about 59% over the past month and is hovering near its 52-week low of $2.15. Shares closed at $2.20 on Friday, down 2.2%.
With an RSI of just 23.2, Houston American Energy is the most technically oversold name on this list. That could mean it's been unfairly punished, or it could mean there are fundamental problems the market is pricing in. Capital raises aren't always bad news, especially if the company uses the money wisely, but investors clearly have concerns.
RSI Value: 23.2
The Bottom Line
Oversold doesn't automatically mean "buy." It just means a stock has been sold off aggressively and might be due for a technical bounce. All three of these energy companies have real challenges, from weak earnings to capital raises to commodity price pressures. But if you're a contrarian investor who believes in mean reversion, these names are showing the kinds of extreme technical readings that sometimes precede a reversal. Just remember that catching a falling knife requires good timing and a strong stomach.
