Top 2 Energy Stocks That May Implode This Quarter

As of Oct. 23, 2024, two stocks in the energy 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.

Centrus Energy Corp LEU

• On Oct. 17, The U.S. Department of Energy awarded the company’s subsidiary, American Centrifuge Operating, a contract aimed at expanding domestic commercial production of High-Assay, Low-Enriched Uranium. The company's stock gained around 86% over the past month and has a 52-week high of $104.50.
• RSI Value: 76.32                              
• LEU Price Action: Shares of Centrus Energy fell 1.2% to close at $93.36 on Tuesday.

Kinder Morgan Inc KMI

• On Oct. 16, Kinder Morgan reported third-quarter revenue of $3.699 billion, missing the consensus estimate of $3.975 billion, according to Benzinga Pro. The company reported quarterly earnings of 25 cents per share, missing analyst estimates of 27 cents per share. "The company had a solid third quarter on increased financial contributions from our Natural Gas Pipelines and Terminals business segments, with Adjusted EBITDA up 2% versus the third quarter of 2023. Further, KMI's balance sheet remains very strong, as we ended the quarter with a Net Debt-to-Adjusted EBITDA ratio of 4.1 times," said Kim Dang, CEO of Kinder Morgan. The company's stock gained around 12% over the past month and has a 52-week high of $25.43.
• RSI Value: 75.33
• KMI Price Action: Shares of Kinder Morgan rose 0.3% to close at $24.81 on Tuesday.

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