As of May 16, 2024, five stocks in the utilities 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.
FirstEnergy Corp. (NYSE:FE)
- On April 25, FirstEnergy posted better-than-expected quarterly sales. "Despite a mild winter, we're off to a solid start in 2024. Our first quarter financial results are above the midpoint of our guidance, reflecting strong execution across each of our businesses," said Brian X. Tierney, President and Chief Executive Officer. The company's stock gained around 9% over the past month and has a 52-week high of $40.65 .
- RSI Value: 70.99
- FE Price Action: Shares of FirstEnergy rose 1.1% to close at $40.26 on Wednesday.
NRG Energy, Inc. (NYSE:NRG)
- On May 7, NRG Energy reported better-than-expected first-quarter GAAP EPS results. "NRG continued to deliver exceptional operating and financial results during the first quarter of 2024," said Larry Coben, NRG Chair, Interim President and Chief Executive Officer. The company's stock gained around 12% over the past five days and has a 52-week high of $86.00.
- RSI Value: 71.11
- NRG Price Action: Shares of NRG Energy rose 2.9% to close at $84.49 on Wednesday.
The AES Corporation (NYSE:AES)
- On May 15, AES agreed to sell its equity interest in AES Brasil to Auren Energia for $640 million. The company's stock gained around 33% over the past month and has a 52-week high of $22.60.
- RSI Value: 80.91
- AES Price Action: Shares of AES rose 4% to close at $21.13 on Wednesday.
NextEra Energy, Inc. (NYSE:NEE)
- On April 23, NextEra Energy posted upbeat quarterly earnings. The company's stock jumped around 25% over the past month and has a 52-week high is $77.19.
- RSI Value: 82.39
- NEE Price Action: Shares of NextEra Energy rose 2.2% to close at $77.05 on Wednesday.
PG&E Corporation (NYSE:PCG)
- On April 25, PG&E reported first-quarter FY24 operating revenue of $5.86 billion (vs. $6.21 billion a year ago), missing the consensus of $6.59 billion. The company's stock jumped around 14% over the past month and has a 52-week high of $18.32.
- RSI Value: 76.63
- PCG Price Action: Shares of PG&E rose 1.7% to close at $18.31 on Wednesday.
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