Top 3 Utilities Stocks That May Plunge This Quarter

The most overbought stocks in the utilities 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.

Vistra Corp. VST

• Vistra reported second-quarter sales of $3.19 billion, which more than doubled from the prior year. "I'm excited to report our second quarter results today of $1,008 million in Ongoing Operations Adjusted EBITDA. Our focus and execution on operational excellence, risk management, and strong retail performance demonstrated an integrated platform that is bolstering Vistra's elevated and de-risked earnings profile and delivering substantial value to our shareholders through our robust return of capital program," said Jim Burke, president and CEO of Vistra. The company’s stock has a 52-week high of $30.99. .
• RSI Value: 74.82
• VST Price Action: Shares of Vistra fell 1.8% to close at $30.14 on Friday.

Otter Tail Corporation OTTR

• Otter Tail reported better-than-expected second-quaretr financial results and raised FY23 EPS guidance above estimates. "We are pleased with our second quarter financial results," said President and CEO Chuck MacFarlane, "with our employees continuing to adapt to changing market conditions. The company’s stock has a 52-week high of $92.74.
• RSI Value: 71.77
• OTTR Price Action: Shares of Otter Tail rose 0.2% to close at $91.80 on Friday.

Constellation Energy Corporation CEG

• Constellation Energy reported better-than-expected second-quarter EPS results. "Constellation continues to deliver strong operational and financial performance across the business, while giving customers the visibility and certainty they need to manage energy costs during a time of market volatility and creating value for our shareholders," said Joe Dominguez, president and CEO, Constellation. The company has a 52-week high of $106.85.
• RSI Value: 74.61
• CEG Price Action: Shares of Constellation Energy gained 1.1% to close at $106.56 on Friday.

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