Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the information technology 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.
Couchbase, Inc. (NASDAQ: BASE)
- Couchbase reported better-than-expected second-quarter results. "We delivered revenue and profitability that exceeded the high end of our guidance range, highlighted by 24% ARR growth, strong retention, and increasing momentum with Capella," said Matt Cain, Chair, President and CEO of Couchbase. The company’s stock has a 52-week high of $22.50. .
- RSI Value: 83.97
- BASE Price Action: Shares of Couchbase jumped 19.5% to close at $19.72 on Thursday.
- UiPath, reported better-than-expected earnings and issued upbeat third-quarter outlook. "We delivered second quarter fiscal 2024 ARR growth of 25 percent while executing on our strategic initiatives and driving operational excellence across the company," said Rob Enslin, UiPath Co-Chief Executive Officer. The company’s stock has a 52-week high of $19.94.
- RSI Value: 77.49
- PATH Price Action: Shares of UiPath jumped 11.5% to close at $18.08 on Thursday.
- Applovin said on Aug. 21, the company entered into agreement to repurchase 15 million shares of its Class A common stock. The company has a 52-week high of $43.76.
- RSI Value: 73.58
- APP Price Action: Shares of AppLovin gained 0.6% to close at $42.48 on Thursday.
- Accenture and Workday expanded partnership to help organizations accelerate finance transformation. The company’s 52-week high is $251.63.
- RSI Value: 70.80
- WDAY Price Action: Shares of Workday rose 0.8% to close at $250.47 on Thursday.
- Nutanix reported better-than-expected fourth-quarter financial results and announced a share repurchase program. "Our fourth quarter capped off a fiscal year that showed healthy year-over-year top line growth and sharp year-over-year improvements in profitability and free cash flow," said Rajiv Ramaswami, President and CEO of Nutanix. The company has a 52-week high of $36.50.
- RSI Value: 81.13
- NTNX Price Action: Shares of Nutanix rose 2.6% to settle at $36.06 on Thursday.
Read More: Around $8M Bet On STAAR Surgical? Check Out These 4 Stocks Insiders Are Buying
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.