Top 4 Tech And Telecom Stocks That May Fall Off A Cliff In Q4

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.

Telecom Argentina S.A. TEO

• Telecom Argentina reported a net income of P$39,407 million for the six month period ended June 30, 2023.. The company’s stock has a 52-week high of $6.88.
• RSI Value: 70.54
• TEO Price Action: Shares of Telecom Argentina fell 2.3% to close at $5.87 on Thursday.

Frontier Communications Parent, Inc. FYBR

• Benchmark analyst Matthew Harrigan reiterated Frontier Communications Parent with a Buy and a $35 price target. The company’s stock has a 52-week high of $30.83.
• RSI Value: 71.56
• FYBR Price Action: Shares of Frontier Communications fell 0.8% to close at $18.78 on Thursday.

SciPlay Corporation SCPL

• SciPlay reported stronger-than-expected second-quarter financial results. Josh Wilson, Chief Executive Officer of SciPlay, commented, "SciPlay has consistently grown our business and led the social casino market in performance over the past six consecutive quarters. Our strong and consistent growth reflects the delivery of great gaming and entertainment experiences to our players, and the unrivaled execution of our team." The company has a 52-week high of $22.96.
• RSI Value: 75.92
• SCPL Price Action: Shares of SciPlay rose 0.1% to close at $22.94 on Thursday.

IDT Corporation IDT

• IDT reported a decline in adjusted EPS for the fourth quarter. Shmuel Jonas, CEO said, “Our results this quarter were highlighted by the continued expansion of our three high-growth, high-margin businesses, while our Traditional Communications segment performed as expected.” The company’s 52-week high is $35.18.
• RSI Value: 76.19
• IDT Price Action: Shares of IDT gained 0.6% to close at $29.68 on Thursday.

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