Top 2 Utilities Stocks That May Fall Off A Cliff In Q1

As of March 6, 2024, two 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.

Vistra Corp. VST

• On Feb. 28, Vistra reported FY23 results and authorized an additional $1.5 billion to its share buyback program. "I want to thank our Vistra team of nearly 5,000 men and women for a very strong year of operational and financial performance. Their focus on safety, operational excellence, and customer experience enabled the production and delivery of safe, reliable, and affordable power to our retail and commercial customers across the country despite several significant weather events throughout the year," said Jim Burke, President and CEO of Vistra. "Our integrated model performed very well and enabled us to stay focused on the four key strategic priorities underpinning our Vistra strategy." The company’s stock gained around 18% over the past five days and has a 52-week high of $59.75 .
• RSI Value: 92.47
• VST Price Action: Shares of Vistra gained 3.3% to close at $58.89 on Tuesday.

Constellation Energy Corporation CEG

• On Feb. 27, Constellation Energy reported better-than-expected fourth-quarter revenue. "We had extremely strong financial and operational performance as our nuclear fleet continued to achieve unmatched reliability, allowing us to deliver carbon-free energy to our customers in all hours of the day under some of the harshest weather conditions in decades," said Joe Dominguez, president and CEO of Constellation. The company’s stock gained around 35% over the past month and has a 52-week high of $185.58.
• RSI Value: 83.66
• CEG Price Action: Shares of Constellation Energy gained 0.4% to close at $176.77 on Tuesday.

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