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PennantPark Investment Corporation (PNNT - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because PNNT is now in overbought territory with an RSI value of 70.88.
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 PNNT’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions PennantPark Investment Corp’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of PNNT’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 PNNT’s has also been on a downward trend over the same time period too, as the estimates have fallen nearly 2% over the last two months.
If this wasn’t enough, PennantPark Investment Corp. also has a Zacks Rank #4 (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.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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PennantPark Investment Corp (PNNT) Enters Overbought Territory
PennantPark Investment Corporation (PNNT - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because PNNT is now in overbought territory with an RSI value of 70.88.
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 PNNT’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions PennantPark Investment Corp’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of PNNT’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 PNNT’s has also been on a downward trend over the same time period too, as the estimates have fallen nearly 2% over the last two months.
If this wasn’t enough, PennantPark Investment Corp. also has a Zacks Rank #4 (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.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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