Top 3 Utilities Stocks That May Implode This Month

As of March 20, 2024, three 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.

Constellation Energy Corporation CEG

• On March 19, Wells Fargo analyst Neil Kalton maintained Constellation Energy with an Overweight and raised the price target from $175 to $185. The company’s stock gained around 31% over the past month and has a 52-week high of $185.58 .
• RSI Value: 70.29
• CEG Price Action: Shares of Constellation Energy rose 2.1% to close at $172.41 on Tuesday.

Vistra Corp. VST

• On March 7, Vistra announced expansion of its board of directors with the appointment of Bill Pitesa. The company’s stock gained around 38% over the past month and has a 52-week high of $64.74.
• RSI Value: 77.02
• VST Price Action: Shares of Vistra gained 2.3% to close at $63.68 on Tuesday.

NRG Energy, Inc. NRG

• On Feb. 28, NRG Energy posted better-than-expected fourth-quarter sales. "We delivered very strong financial performance in 2023," said Larry Coben, NRG Chair, Interim President and Chief Executive Officer. "The Company is well positioned for 2024 and ahead of pace against the plan we laid out at our June 2023 Investor Day. We remain focused on executing against our consumer and capital allocation strategy." The company’s stock gained around 29% over the past month and has a 52-week high of $66.95.
• RSI Value: 87.45
• NRG Price Action: Shares of NRG Energy gained 2.6% to close at $66.66 on Tuesday.

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