Data Insights

The 10 most overbought and oversold ASX 200 stocks – Week 22

Mon 03 Jun 24, 11:41am (AEST)
marketsasx
Source: Shutterstock

Stocks in article

tlx
MktCap:
-
s32
MktCap:
-
alu
MktCap:
-
awc
MktCap:
-
ben
MktCap:
-
nwh
MktCap:
-
a2m
MktCap:
-
fph
MktCap:
-
pni
MktCap:
-
lov
MktCap:
-
ape
MktCap:
-
ctd
MktCap:
-
nuf
MktCap:
-
nec
MktCap:
-
ora
MktCap:
-
jhx
MktCap:
-
tah
MktCap:
-
rhc
MktCap:
-
bap
MktCap:
-
apa
MktCap:
-

Share article

Key Points

  • Telix Pharmaceuticals rallied into overbought territory after reporting positive results for its Phase I ProstACT SELECT trial
  • Bendigo Bank shares continue to benefit from an unexpectedly positive trading update from two weeks ago
  • Bapcor and Eagers Automotive have both downgraded full-year earnings in recent weeks, reflecting sector wide challenges

Biotech, base metal miners and quarterly reporting season winners have topped the overbought stocks list while automotive retailers dipped into oversold territory last week.

The 14-day Relative Strength Index is a momentum indicator that measures the 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 indicator, Telix Pharmaceuticals is the most overbought stock on the ASX 200 with an RSI of 76.


Most Overbought ASX 200 Stocks

Ticker

Company

RSI

1-Month %

Close Price

Target price

Upside

TLX

Telix Pharmaceuticals

76

22.6%

$18.15

$17.09

-5.8%

S32

South32

75

11.8%

$3.97

$3.85

-3.0%

ALU

Altium

73

1.7%

$67.00

$61.76

-7.8%

AWC

Alumina

72

24.7%

$1.90

$1.42

-25.1%

BEN

Bendigo and Adelaide Bank

69

12.6%

$10.93

$10.27

-6.0%

NWH

NRW Holdings

68

11.2%

$3.08

$3.18

3.2%

A2M

The A2 Milk Company

66

19.8%

$7.08

na

na

FPH

Fisher & Paykel Healthcare

65

6.9%

$27.20

na

na

PNI

Pinnacle Investment Management

65

14.5%

$13.18

$13.98

6.1%

LOV

Lovisa

64

9.7%

$33.91

$29.94

-11.7%

'Target price' is an aggregate of broker target prices from Refinitiv. Data as of the close on Friday, 31 May 2024

The biotech sector is running hot, with names like Telix and Neuren making significant progress for their respective therapy trials. Telix was a big winner last week, with the stock up 15.3% on Friday after reporting promising data for its Phase I ProstACT SELECT trial for TLX591, which seeks to treat prostate cancer.

The trial demonstrated a median radiographic progression-free survival (rPFS) of 8.8 months, which several analysts saw as a positive indication of the drug's potential efficacy. The rPFS refers to the median amount of time that patients were able to live without their cancer worsening.

After the trial results, the average price target across 8 brokers rose 2.2% to $17.47.

Bendigo Bank is an interesting overbought stock to watch after the company announced an unexpectedly positive year-to-date trading update on 20 May. The stock finished the session 8% higher after the update noted improving net interest margins and lower credit costs. This is contrary to analyst expectations of further challenges with margins and cost pressures. The stock is now up a further 3.5% since the trading update. While it may be technically overbought, the stock continues to benefit from the unexpectedly positive update.


Most Oversold ASX 200 Stocks

Ticker

Company

RSI

1-Month %

Close Price

Target price

Upside

APE

Eagers Automotive

23

-15.7%

$10.12

$12.16

20.2%

CTD

Corporate Travel Management

26

-11.0%

$13.30

$18.03

35.6%

NUF

Nufarm

27

-13.2%

$4.47

$5.44

21.7%

NEC

Nine Entertainment

28

-3.8%

$1.41

$1.93

37.4%

ORA

Orora

30

-4.7%

$2.05

$2.59

26.3%

JHX

James Hardie Industries

30

-12.3%

$46.79

$53.29

13.9%

TAH

Tabcorp

31

-13.4%

$0.62

$0.85

38.2%

RHC

Ramsay Health Care

32

-7.6%

$47.11

$56.63

20.2%

BAP

Bapcor

32

-3.4%

$4.25

$4.76

12.0%

APA

APA Group

32

-0.4%

$8.24

$8.93

8.4%

'Target price' is an aggregate of broker target prices from Refinitiv. Data as of the close on Friday, 31 May 2024

Bapcor was one of the first automotive retailers to report a downbeat trading update, where the company said it expects second-half FY24 earnings to be below that of the first half. The headwinds were driven by challenging retail business conditions due to weak consumer confidence and low levels of discretionary spending as well as competitive pricing within wholesale segments and higher interest costs. The stock finished the session (2 May) down 23.9%.

It would have been wise to use Bapcor's trading update as a read through for the rest of the industry, as peers like Eagers Automotive and Peter Warren Automotive reported similar trading updates in the following weeks. On 21 May, Eagers said it expects the first-half of 2024 to generate around 85% of the underlying profit before tax generated in the first-half of 2023. Unsurprisingly, the stock finished the session down 15.0%. Both Eagers and Bapcor shares have continued to grind lower since their earnings downgrades.

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

Get the latest news and insights direct to your inbox

Subscribe free