The most overbought stocks in the energy 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.
Bristow Group Inc. (NYSE:VTOL)
- Bristow Group disclosed the financial guidance for FY24. The company expects an operating revenues range of around $1.295 billion – $1.465 billion (+10% vs. 2023 guidance) compared to the consensus of $1.43 billion. The company’s stock has a 52-week high of $30.94. .
- RSI Value: 70.61
- VTOL Price Action: Shares of Bristow Group fell 1.8% to close at $29.03 on Wednesday.
Southwestern Energy Company (NYSE:SWN)
- Stifel initiated coverage on Southwestern Energy with a Buy rating and announced a price target of $7.5. The company’s stock has a 52-week high of $8.39.
- RSI Value: 72.30
- SWN Price Action: Shares of Southwestern Energy fell 1.2% to close at $5.96 on Wednesday.
The Williams Companies, Inc. (NYSE:WMB)
- Williams Companies posted better-than-expected first-quarter earnings. Alan Armstrong, president and chief executive officer said, “Williams experienced record natural gas gathering volumes and contracted capacity in the first quarter, driving higher earnings across all four core business segments compared to first quarter 2022, with Adjusted EBITDA up nearly 20 percent.” The company has a 52-week high of $35.79.
- RSI Value: 70.48
- WMB Price Action: Shares of Williams Companies fell 0.8% to close at $32.46 on Wednesday.
Newpark Resources, Inc. (NYSE:NR)
- Newpark Resources reported an increase in quarterly EPS. Matthew Lanigan, Newpark’s President and Chief Executive Officer, stated, “Our first quarter continued the momentum from the fourth quarter, marked by solid performance both financially, and against our stated key initiatives. We also continued to return significant value to shareholders through the repurchase of nearly 4% of our outstanding shares in the quarter.” The company’s 52-week high is $5.45.
- RSI Value: 70.29
- NR Price Action: Shares of Newpark Resources fell 0.6% to close at $5.19 on Wednesday.
Equitrans Midstream Corporation (NYSE:ETRN)
- Morgan Stanley recently reiterated Equitrans Midstream with an Overweight and maintained $14 price target. The company has a 52-week high of $9.90.
- RSI Value: 71.42
- ETRN Price Action: Shares of Equitrans Midstream fell 0.4% to settle at $9.54 on Wednesday.
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