The 10 most overbought and oversold ASX 200 stocks — Week 33
Reporting season winners including Inghams, Cochlear and Carsales jump into overbought territory.
Source: iStock
Mentioned
KEY POINTS
- Reporting season winners including Inghams, Cochlear and Carsales top the overbought stocks list
- Companies that posted strong results have seen their share prices continue to rally post-earnings
- Beaten up battery metal and gold miners including Core Lithium, Iluka Resources, IGO and Northern Star continue to sit in oversold territory
Inghams (ASX: ING) reported FY23 revenue and net profit figures that beat analyst expectations amid a 12.8% year-on-year rise in poultry prices. The company's shares rallied more than 20% since its results on Thursday, 17 August – Making it the most overbought stock on the ASX 200 this 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, Inghams is the most overbought with an RSI of 82.
The Most Overbought Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Inghams Group | 82 | 20.3% | $3.38 | $3.15 | -6.8% | |
Cochlear | 80 | 12.1% | $261.70 | $239.22 | -8.6% | |
Carsales.Com | 77 | 17.3% | $27.90 | $27.65 | -0.9% | |
United Malt Group | 77 | 2.1% | $4.92 | $4.81 | -2.2% | |
Boral | 76 | 18.2% | $5.01 | $4.55 | -9.2% | |
Goodman Group | 73 | 9.8% | $22.40 | $22.70 | 1.3% | |
Reece | 72 | 8.8% | $20.46 | $14.87 | -27.3% | |
AMP | 72 | 16.7% | $1.26 | $1.18 | -6.0% | |
G.U.D. | 71 | 21.9% | $11.58 | $12.71 | 9.8% | |
Magellan Financial Group | 69 | 13.9% | $10.42 | $8.48 | -18.6% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at Friday 18, August 2023 close. (Table: Market Index | Source: Refinitiv)
Reporting season is in full swing and the overbought stocks this week are mostly from the companies that rallied on better-than-expected results.
What's interesting is that most of these reporting season winners continued to rally post earnings, with very shallow pullbacks. This makes them appear more technically overbought but the momentum should not be underestimated.
Below, we're listing how the stock performed on the day of the result plus result-to-date.
Ticker | Name | Result date | Result day performance | Results-to-date |
|---|---|---|---|---|
Inghams Group | 17 August | +14.75% | +21.6% | |
Cochlear | 15 August | +5.7% | +12.2% | |
Carsales.Com | 14 August | +7.0% | +13.4% | |
Boral | 10 August | +8.5% | +14.7% | |
Goodman Group | 17 August | +5.7% | +13.4% | |
AMP | 10 August | +4.6% | +14.1% | |
G.U.D. | 15 August | +14.9% | +13.3% | |
Magellan Financial Group | 18 August | +13.3% | +12.2% |
Results to date based on result date to Friday, 18 August 2023.
The oversold stocks list remains relatively unchanged compared to last week. Beaten up battery metal and gold miners including Core Lithium, Iluka Resources, IGO and Northern Star make another appearance.
The Most Oversold Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Core Lithium | 11 | -54.6% | $0.42 | $0.64 | 54.2% | |
Growthpoint Properties | 19 | -15.9% | $2.39 | $3.47 | 45.2% | |
Iluka Resources | 22 | -13.5% | $9.34 | $10.97 | 17.5% | |
Fisher & Paykel | 22 | -8.8% | $20.61 | na | na | |
Chalice Mining | 22 | -15.0% | $4.98 | $7.89 | 58.4% | |
Resmed Inc | 23 | -18.5% | $26.18 | na | na | |
Coles Group | 23 | -4.0% | $17.30 | $18.98 | 9.7% | |
IGO Limited | 25 | -17.2% | $12.35 | $14.73 | 19.3% | |
Telstra | 25 | -4.8% | $4.00 | $4.67 | 16.8% | |
Northern Star | 26 | -11.9% | $10.36 | $12.74 | 23.0% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at Friday 18, August 2023 close. (Table: Market Index | Source: Refinitiv)
