Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Feb. 9, 2024, five 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.
Rumble Inc. (NASDAQ: RUM)
- On Jan. 22, Rumble announced a partnership with Barstool Sports. “Rumble is quickly emerging as a leading platform for the under-30 demographic, and we’re excited for Barstool Sports to be a significant part of our rapid growth,” said Chris Pavlovski, chairman and CEO of Rumble. The company’s stock gained around 93% over the past month and has a 52-week high of $11.25 .
- RSI Value: 70.87
- RUM Price Action: Shares of Rumble fell 1.1% to close at $7.97 on Thursday.
- On Feb. 7, QuinStreet reported better-than-expected second-quarter financial results. "The December quarter continued recent positive trends," commented Doug Valenti, CEO of QuinStreet. "We grew non-Insurance businesses, made good progress on growth initiatives, and positioned ourselves well for the re-ramp of Auto Insurance client spending. I am particularly proud of our delivering positive adjusted EBITDA despite the Insurance market bottom and our toughest seasonal quarter. Our financial position and foundation remain strong." The company’s stock gained around 14% over the past five days and has a 52-week high of $18.18.
- RSI Value: 74.28
- QNST Price Action: Shares of QuinStreet gained 13.8% to close at $14.69 on Thursday.
- On Jan. 17, Manchester United reported its first-quarter results and reduced its fiscal 2024 guidance. For fiscal 2024, the company is forecasting revenue guidance to be within a range of £635 million to £665 million (prior guidance: £650 million to £680 million). The company’s stock gained around 10% over the past five days and has a 52-week high of $27.34.
- RSI Value: 72.87
- MANU Price Action: Shares of Manchester United gained 1.6% to close at $21.70 on Thursday.
- On Jan. 12, WiMi Hologram Cloud said it is working on blockchain secure storage strategy based on MCMC algorithm. The company’s stock jumped around 71% over the past five days and has a 52-week high is $1.40.
- RSI Value: 71.59
- WIMI Price Action: Shares of WiMi Hologram Cloud gained 34.8% to close at $1.08 on Thursday.
- On Feb. 7, Disney reported better-than-expected earnings for its first quarter and declared a cash dividend of 45 cents per share. The company announced a new share repurchase program and said it expects fiscal 2024 earnings of roughly $4.60 per share. Disney also announced a $1.5 billion investment in leading video game company Epic Games. The company’s stock jumped around 15% over the past five days and has a 52-week high of $112.77.
- RSI Value: 80.75
- DIS Price Action: Shares of Disney gained 11.5% to close at $110.54 on Thursday.
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