The 10 most overbought and oversold stocks on the ASX 200
Credit Corp, AGL Energy and Virgin Money are among the most overbought stocks on the ASX 200.
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Mentioned
KEY POINTS
- Credit Corp is the most overbought stock on the ASX, with an RSI of 85
- AGL Energy is another popular stock that investors have been piling into since March, with an RSI of 82
- Ansell and Syrah Resources are two of the most oversold stocks on the ASX, with RSIs of 32 and 33 respectively
Credit Corp (ASX: CCP) came out as the most overbought stock this week, up 10 out of the last 11 sessions to levels not seen since August 2022.
The 14-day 'Relative Strength Index' is a momentum indicator that measures that magnitude and speed of recent price changes to assess whether or not a stock is overbought or oversold.
An RSI of 70 or above is considered to be overbought, which means the stock is rising too quickly and likely to experience a pullback. Meanwhile, an RSI of 30 or below is considered to be oversold, which means the stock is falling too quickly and is likely to experience a rebound.
Based on this gauge, Credit Corp is the most overbought stock with an RSI of 85. The company's latest announcement dates back to 4 May, where it reaffirmed its FY23 net profit guidance of $90-97 million vs. analyst expectations of $93 million.
Most Overbought Stocks
Ticker | Name | Sector | 14-Day RSI | Target price | Return |
|---|---|---|---|---|---|
Credit Corp | Financials | 85 | $22.81 | -3.1% | |
AGL Energy | Utilities | 82 | $11.21 | -6.6% | |
Virgin Money | Financials | 76 | na | na | |
Megaport | Tech | 76 | $9.58 | -2.9% | |
United Malt | Staples | 75 | $4.81 | -0.2% | |
Origin Energy | Utilities | 75 | $8.21 | -5.0% | |
Flight Centre | Discretionary | 74 | $21.25 | -4.0% | |
Computershare | Industrials | 74 | $27.22 | 8.9% | |
Downer EDI | Industrials | 73 | $3.99 | -13.1% | |
Monadelphous Grou | Industrials | 72 | $13.12 | 0.0% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at Monday 24, July. (Table: Market Index | Source: Refinitiv)
AGL Energy (ASX: AGL) is another popular stock that investors have been piling into since March, with an RSI of 82. The stock is up 76% since late March with only a handful of shallow pullbacks. On 16 June, AGL's Investor Day Presentation guided to FY24 net profit between $580-780 million, up from an expected $255-285 million in FY23.
Meanwhile, here are some of the most oversold stocks this week.
Most oversold Stocks
Ticker | Name | Sector | RSI | Target price | Return |
|---|---|---|---|---|---|
Lake Resources | Materials | 24 | na | na | |
Link Administration | Industrials | 26 | $2.30 | 48.4% | |
Ansell | Health Care | 32 | $25.39 | 6.7% | |
Syrah Resources | Materials | 32 | $1.14 | 55.1% | |
Chalice Mining | Materials | 33 | $7.89 | 37.0% | |
Healius | Health Care | 33 | $3.10 | 9.2% | |
National Storage Reit | Real Estate | 34 | $2.38 | 6.7% | |
Iluka Resources | Materials | 34 | $11.36 | 6.5% | |
Core Lithium | Materials | 35 | $0.90 | 3.4% | |
Northern Star Resources | Materials | 36 | $13.15 | 12.7% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at Monday 24, July. (Table: Market Index | Source: Refinitiv)
Ansell (ASX: ANN) shares tumbled 14% last Tuesday after outlining new plans to restructure its business in response to persistent destocking issues in the healthcare sector. The company's FY23-24 guidance came in below expectations and triggered some skepticism among analysts. Brokers include JPMorgan, Barrenjoey and Citi lowered their target prices, citing Ansell's track record of underperformance and lack of bottom-line growth.
Syrah (ASX: SYR) also faced a 16% drop last Tuesday after its second quarter production came in at 15,000 tonnes, significant below estimates. The company said it paused production through May and June, reflecting the lack of demand and volatile Chinese anode market conditions.
