Sometimes the best opportunities hide in the stocks everyone else is dumping. In the communication services sector, a handful of beaten-down names are flashing technical signals that might interest contrarian investors looking for potential turnarounds.

The Relative Strength Index, or RSI, is one of those momentum indicators that traders obsess over. It essentially compares how strong a stock performs on up days versus down days. When the RSI dips below 30, conventional wisdom says the stock is oversold, meaning it might be due for a bounce. Of course, sometimes stocks are cheap for good reasons, but let's look at what's currently sitting in oversold territory.

Rogers Communications Tackles Screen Time Concerns

Rogers Communications Inc. (RCI) is dealing with more than just stock price pressure. The Canadian telecom giant launched a five-year, $50 million national program on January 8 aimed at helping young people develop healthier relationships with their devices.

"Connectivity brings us together and it connects us to the world around us, but excessive screen time is a real concern for our customers," said Tony Staffieri, President and CEO of Rogers. "Our customers want help managing screen time and Screen Break is our commitment to help young people build a healthier, balanced relationship with their screens."

It's somewhat ironic that a company whose business model depends on people staying connected is now funding programs to help them disconnect. But that's where customer concerns are heading, and Rogers is responding.

The stock has fallen around 3% over the past month, with a 52-week low of $23.18. Its RSI currently sits at 23.6, well into oversold territory. On Tuesday, shares dropped another 1.6% to trade at $35.74. The stock carries a momentum score of 65.78, though its value score is a more modest 45.51.

Netflix Gets Analyst Love Despite Recent Weakness

Netflix Inc. (NFLX) hasn't been immune to selling pressure either. The streaming giant has declined around 4% over the past month, with a 52-week low of $82.11.

But on January 12, HSBC analyst Mohammed Khallouf initiated coverage with a Buy rating and set a price target of $107. That represents meaningful upside from current levels, suggesting at least one Wall Street analyst thinks the recent weakness is overdone.

Netflix's RSI stands at 28.9, just barely above the oversold threshold of 30. Shares managed to eke out a 0.3% gain on Tuesday, closing at $89.68. Market data helped identify the developing trend in Netflix stock, showing the technical setup that has traders paying attention.

AT&T Faces Price Target Cuts

AT&T Inc. (T) rounds out the trio of oversold communication stocks. The telecom giant has had a particularly rough week, falling around 4% over the past five days. Its 52-week low sits at $21.38.

On January 13, Barclays analyst Kannan Venkateshwar maintained an Equal-Weight rating on AT&T but lowered his price target from $28 to $26. That's not exactly a ringing endorsement, though the Equal-Weight rating suggests the analyst sees the stock as fairly valued at current levels, even after the target cut.

AT&T's RSI currently reads 29.7, putting it firmly in oversold territory alongside Rogers and Netflix. Shares fell 1.7% on Tuesday to trade at $23.32. Trading signals have flagged a potential breakout pattern in the stock, though whether that materializes remains to be seen.

The Oversold Opportunity

These three stocks present an interesting case study in technical analysis. All three have RSI readings below or near 30, suggesting selling pressure may have gotten excessive. But oversold doesn't automatically mean "buy" any more than overbought means "sell." Markets can stay irrational longer than you can stay solvent, as the saying goes.

What makes these stocks potentially interesting is the combination of technical oversold conditions and the fundamental context. Rogers is addressing real customer concerns about screen time. Netflix just got a Buy rating from a major bank. And AT&T, while facing price target cuts, still maintains an Equal-Weight rating even after recent weakness.

For investors with a contrarian streak and the stomach to catch falling knives, these oversold communication stocks might warrant a closer look. Just remember that sometimes stocks are oversold for good reasons, and other times they're simply on their way to becoming even more oversold.