Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 29, 2023, three stocks in the communication services sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
Advantage Solutions Inc. (NASDAQ: ADV)
- On Dec. 12, Advantage Solutions announced Plans to streamline and restructure its international businesses. The company’s stock jumped around 40% over the past month and has a 52-week high of $4.05 .
- RSI Value: 75.75
- ADV Price Action: Shares of Advantage Solutions fell 3.7% to close at $3.86 on Thursday.
- On Nov. 2, Globalstar reported third-quarter FY23 sales growth of 53% year-on-year to $57.7 million. "Globalstar continued to sustain its record growth this year, with a significant improvement in profitability during the third quarter driven by a 53% increase in total revenue. Given the high margin nature of our revenue sources, Adjusted EBITDA increased 125% over the third quarter of last year. We continued to see momentum build outside of our wholesale services, reflecting new initiatives in Commercial IoT," said Rebecca Clary, Chief Financial Officer. The company’s stock gained around 19% over the past month and has a 52-week high of $1.98.
- RSI Value: 74.64
- GSAT Price Action: Shares of Globalstar fell 3.1% to close at $1.89 on Thursday.
- On Nov. 6, TrueCar posted upbeat quarterly sales. The company’s stock jumped around 27% over the past month and has a 52-week high of $3.77.
- RSI Value: 75.46
- TRUE Price Action: Shares of TrueCar fell 2.5% to close at $3.53 on Thursday.
- On Dec. 14, ATN International Board of Directors expanded share repurchase program to $25 million and increased dividend from 21 cents to 24 cents per share. The company’s stock gained around 30% over the past month and has a 52-week high is $50.27.
- RSI Value: 75.67
- ATNI Price Action: Shares of ATN International fell 1.4% to close at $38.98 on Thursday.
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