As of Jan. 12, 2024, four 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.
Beasley Broadcast Group, Inc.
- On Nov. 1, Beasley Broadcast posted downbeat quarterly results. Caroline Beasley, Chief Executive Officer, said, “Beasley’s third quarter financial results reflect the well-publicized economic challenges and continued advertising market softness which we outlined in the prior quarters. While we saw sequential month-over-month improvement in our advertising revenue performance from August to September, our net revenues for the 2023 third quarter decreased 5.8% year-over-year, or 3.2% when excluding the year-over-year decrease in political advertising revenue of $1.9 million.” The company’s stock jumped around 7% over the past month and has a 52-week high of $1.39.
- RSI Value: 75.48
- BBGI Price Action: Shares of Beasley Broadcast fell 1.9% to close at $0.8050 on Thursday.
Fluent, Inc.
- On Nov. 14, 2023, Fluent posted weak quarterly results. Don Patrick, Fluent’s Chief Executive Officer, commented, “Our third quarter results clearly reflect our post-FTC settlement transition and the subsequent impact on our financials related to the business segments we have deemed non-strategic in the future.” The company’s stock gained around 45% over the past month and has a 52-week high of $1.81.
- RSI Value: 78.11
- FLNT Price Action: Shares of Fluent fell 2.5% to close at $0.7401 on Thursday.
Reading International, Inc.
- On Nov. 14, Reading International posted a narrower quarterly loss. President and Chief Executive Officer, Ellen Cotter said, “Building on the success of our strong second quarter, the Company continued that positive momentum into the third quarter by delivering global total revenues of $66.6 million, which grew by 30% compared to the third quarter of 2022.” The company’s stock jumped around 13% over the past month and has a 52-week high of $3.72.
- RSI Value: 70.78
- RDI Price Action: Shares of Reading International rose 1% to close at $1.98 on Thursday.
PLDT Inc.
- The company’s stock has a 52-week high of $27.98.
- RSI Value: 70.60
- PHI Price Action: Shares of PLDT fell 1% to close at $22.94 on Thursday.
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