Benzinga - by Lisa Levin, Benzinga Editor.
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.
Liberty Energy Inc. (NYSE: LBRT)
- Liberty Energy reported better-than-expected third-quarter sales results. "Liberty delivered excellent quarterly financial results reflecting outstanding operational execution, focused customer engagement and agility across a softer North American frac market," commented Chris Wright, Chief Executive Officer. The company’s stock has a 52-week high of $21.25. .
- RSI Value: 70.83
- LBRT Price Action: Shares of Liberty Energy fell 0.4% to close at $20.54 on Tuesday.
- Energy Services of America reported an increase in EPS for the second quarter. Douglas Reynolds, President, said, “We are very pleased with the results for our quarter ended June 30, 2023. The $85.5 million in revenue is the largest amount generated in any quarter by the Company in its history.” The company’s stock has a 52-week high of $4.90.
- RSI Value: 75.00
- ESOA Price Action: Shares of Energy Services of America closed at $4.74 on Tuesday.
- TORM reported better-than-expected second-quarter EPS results. The company has a 52-week high of $36.60.
- RSI Value: 73.14
- TRMD Price Action: Shares of TORM gained 3.9% to close at $30.70 on Tuesday.
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