Benzinga - The most overbought stocks in the communication services sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
Roku, Inc. (NASDAQ: ROKU)
- Roku reported better-than-expected second-quarter results and issued strong third-quarter guidance. The company’s stock has a 52-week high of $89.71. .
- RSI Value: 72.91
- ROKU Price Action: Shares of Roku jumped 31.4% to close at $89.61 on Friday.
- Cumulus Media reported better-than-expected second-quarter financial results. Mary G. Berner, President and Chief Executive Officer of Cumulus Media, said, “Despite continued challenges in the overall market, our second quarter revenue performed in-line with expectations while Adjusted EBITDA exceeded them.” The company’s stock has a 52-week high of $10.18.
- RSI Value: 78.77
- CMLS Price Action: Shares of Cumulus Media gained 14.5% to close at $5.54 on Friday.
- Madison Square Garden Sports will replace Aerojet Rocketdyne in the S&P SmallCap 600 effective prior to the opening of trading on Aug. 1. The company has a 52-week high of $213.54.
- RSI Value: 77.43
- MSGS Price Action: Shares of Madison Square Garden Sports gained 11.7% to close at $212.24 on Friday.
- Cardlytics named Alexis DeSieno as new Chief Financial Officer. The company’s 52-week high is $18.21.
- RSI Value: 70.58
- CDLX Price Action: Shares of Cardlytics rose 14.3% to close at $11.01 on Friday.
- The company posted upbeat quarterly sales. "I am very proud of the record performance that our team was able to deliver in the second quarter and believe that these results position us well for the second half of the year, as we continue to execute our plan focused on growing revenue, generating cash flow and returning capital to stockholders," said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. The company has a 52-week high of $14.90.
- RSI Value: 75.52
- SPOK Price Action: Shares of Spok Holdings gained 10.7% to settle at $14.78 on Friday.
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