Sprague Resources LP has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because SRLP is now in overbought territory with an RSI value of 70.89.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet SRLP’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions of Sprague Resources’ stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of SRLP’s prospects for the near term.
Over the past one month, investors have witnessed 1 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for Sprague Resources has also been on a downward trend over the same time period too, as the estimates have fallen 23.3% over the last two months.
If this wasn’t enough, Sprague Resources also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Sprague Resources (SRLP) Enters Overbought Territory
Sprague Resources LP has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because SRLP is now in overbought territory with an RSI value of 70.89.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet SRLP’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions of Sprague Resources’ stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of SRLP’s prospects for the near term.
Over the past one month, investors have witnessed 1 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for Sprague Resources has also been on a downward trend over the same time period too, as the estimates have fallen 23.3% over the last two months.
If this wasn’t enough, Sprague Resources also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>