Top 5 Tech And Telecom Stocks You May Want To Dump In August

The most overbought stocks in the communication services 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.

United States Cellular Corporation USM

• UScellular and TDS announced the exploration of strategic alternatives for UScellular. The company’s stock has a 52-week high of $40.35. .
• RSI Value: 83.01
• USM Price Action: Shares of United States Cellular rose 1.7% to close at $40.16 on Monday.

Charter Communications, Inc. CHTR

• Charter Communications reported second-quarter FY23 revenue growth of 0.5% year-on-year to $13.66 billion, missing the consensus of $13.85 billion. The company’s stock has a 52-week high of $484.27.
• RSI Value: 76.98
• CHTR Price Action: Shares of Charter Communications fell 0.2% to close at $427.28 on Monday.

Shenandoah Telecommunications Company SHEN

• Shenandoah posted a profit for the second quarter. “I am pleased with our solid execution of our Fiber First growth plan and the continued scaling of our fiber network. Broadband Adjusted EBITDA margin was 39% compared to 36% in the same period a year ago. We expect margins to increase as our Glo Fiber penetration rate grows,” said President and CEO, Christopher E. French. The company has a 52-week high of $24.50.
• RSI Value: 73.19
• SHEN Price Action: Shares of Shenandoah Telecommunications gained 1% to close at $22.93 on Monday.

EchoStar Corporation SATS

• EchoStar posted upbeat quarterly sales. "In the second quarter of 2023, the EchoStar team once again delivered a strong performance, ending the quarter with the delivery of the JUPITER 3/EchoStar XXIV satellite to the launch base as scheduled," said Hamid Akhavan, CEO and President of EchoStar. The company’s 52-week high is $24.80.
• RSI Value: 74.54
• SATS Price Action: Shares of EchoStar gained 1% to close at $23.25 on Monday.

Telephone and Data Systems, Inc. TDS

• TDS announced the exploration of strategic alternatives for UScellular and reported second-quarter financial results. The company has a 52-week high of $18.30.
• RSI Value: 76.43
• TDS Price Action: Shares of Telephone and Data Systems rose 3.6% to settle at $18.04 on Monday.

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