This Underrated Growth Stock Fell Into Oversold Territory Last Week

A stock that has been tumbling in a short period of time can create a good buying opportunity for investors. If the drop in share price is due to a possible overreaction to a recent news event or bearish sentiment is simply a bit strong, then it can be a good time to buy an otherwise quality stock for a reasonable price.One way to identify a stock that has been falling quickly is by using the Relative Strength Index, or RSI. It’s a momentum indicator that looks at a stock’s movements over the past 14 trading days. When the RSI falls below 30, a stock is considered to be oversold.Shares of animal health company Zoetis (NYSE:ZTS) recenty fell into oversold territory. As of the end of last week, Zoetis’ RSI was just under 30. That has, however, happened multiple times within the past 12 months as the stock has experienced some considerable volatility.Nonetheless, it is a good growth stock to invest in as Zoetis reported revenue totaling $9.3 billion last year, which was an increase of 8% from the previous year, and it’s up 15% from 2022 when its top line totaled $8.1 billion.As more people own pets and the need for pet care rises, Zoetis is a stock that should benefit from those trends. The stock is down around 9% year to date. Currently, it trades at 24 times its estimated future earnings, which is a bit expensive. However, if you’re a long-term investor who wants exposure to a steady growth opportunity, Zoetis can make for a good stock to buy and hold, especially with it coming down in price this year.