It could be a good time to buy DISH Network Corp (NASDAQ:DISH) as the company is trading near 52-week lows and in three months the stock has declined over 18%. The company has been in a downward trend since it released its earnings in the beginning of August. Investors punished the stock for missing earnings despite losing fewer subscribers than expected.
In addition, the company’s revenues dropped less than 6% and the sell off that has happened since the earnings miss seems to be overdone. It’s not unusual to see the market overreact on bad news and see negative momentum pull the share price down. However, this also creates an opportunity for investors that see value in a beaten up sock.
DISH is certainly facing lots of competition from online streaming services, Netflix, Inc. (NASDAQ:NFLX) is one big elephant in the room, but the company is still a big player in the space with significant resources that can enable it to be competitive. The company launched Sling TV a few years ago which provides an attractive solution to cord-cutters looking to take advantage of online television services while still being able to watch live TV, which is one area where Netflix is still lacking.
One technical indicator, Relative Strength Index (RSI), confirms that the stock is currently oversold with a reading under 30 and this might mean the share price is due for a reversal. The stock has stabilized since reaching a new 52-week low last week and it could be a great time to lock in a low price for this quality stock.
