The 10 most overbought and oversold ASX 200 stocks – Week 41
Ramelius Resources and Pro Medicus are the two most overbought stocks on the ASX 200.
Mentioned
KEY POINTS
- Ramelius Resources and Pro Medicus are the two most overbought stocks with an RSI of 76 and 72 respectively.
- Magellan Financial Group and The Star Entertainment are the two most oversold stocks with an RSI of 15 and 19 respectively.
The relentless rise in bond yields drove the market to extreme oversold territory last week, meaning that very few stocks were able to avoid some degree of weakness. This week's overbought stock list includes only two stocks that managed to trade with an RSI of 70 or above: Ramelius Resources (ASX: RMS) and Pro Medicus (ASX: PME).
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, Ramelius Resources is the most overbought stock with an RSI of 76.
The Most Overbought Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Ramelius Resources | 76 | 28.7% | $1.64 | $1.66 | 1.5% | |
Pro Medicus | 72 | 13.9% | $82.96 | $70.31 | -15.2% | |
United Malt Group | 62 | 0.4% | $4.95 | $4.81 | -2.8% | |
Fletcher Building | 60 | 5.8% | $4.54 | $5.52 | 21.6% | |
CSR | 60 | -0.8% | $5.87 | $5.62 | -4.3% | |
Gold Road Resources | 60 | 3.4% | $1.74 | $1.90 | 9.4% | |
Invocare | 59 | 0.7% | $12.62 | $11.07 | -12.2% | |
Costa Group | 59 | 9.8% | $3.13 | $2.93 | -6.4% | |
Northern Star | 58 | 2.6% | $11.33 | $12.71 | 12.2% | |
ANZ Group | 57 | 2.6% | $25.57 | $25.53 | -0.2% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at 12:00 pm AEST, 9 October 2023 close. (Table: Market Index | Source: Refinitiv)
Shares in the WA-based gold miner was completely unphased by the sharp drop in gold prices last week, which briefly hit a 7-month low of US$1,820 an ounce. Is this an example of price leading news or maybe Ramelius is just a cut above the rest?
Ramelius year-to-date daily chart (Source: TradingView)
The latest broker coverage for the stock dates back to August reporting season, where Macquarie reiterated an Outperform rating with a $1.60 target price.
"Ramelius' FY23 underlying EBITDA was 7% ahead of our estimate after an inventory movement. The 2 cents per share franked dividend was 1 cent below our assumption," the analysts said.
"Ramelius FY23 result was solid on an underlying basis while net profit was impacted by higher D&A and an impairment at Edna May due to a water inflow at the underground mine. Importantly, Ramelius has retained FY24 guidance."
A few brutally oversold names like Core Lithium (ASX: CXO) and Chalice Mining (ASX: CHN) have finally dropped out of the top ten most oversold stocks list. The stocks haven't bounced. They've just dropped falling.
The Most Oversold Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Magellan Financial Group | 15 | -25.7% | $6.76 | $9.48 | 40.3% | |
The Star Entertainment | 19 | -29.1% | $0.60 | $1.22 | 103.3% | |
Qantas Airways | 21 | -11.3% | $4.92 | $8.33 | 69.5% | |
Cromwell Property Group | 24 | -20.1% | $0.35 | $0.74 | 113.3% | |
Credit Corp | 24 | -15.4% | $17.86 | $22.83 | 27.8% | |
Block Inc | 25 | -22.0% | $68.01 | na | na | |
Growthpoint Properties | 25 | -13.1% | $2.06 | $3.25 | 57.8% | |
Mirvac Group | 26 | -12.6% | $2.06 | $2.43 | 18.2% | |
Alumina | 26 | -8.9% | $0.92 | $1.22 | 32.6% | |
Iress | 26 | -14.1% | $5.42 | $9.12 | 68.3% |
'Target price' is an aggregate of all broker target prices under Refinitiv's database. Data as at 12:00 pm AEST, 9 October 2023 close. (Table: Market Index | Source: Refinitiv)
Magellan (ASX: MFG) shares tumbled almost 20% last Friday after reporting $35 billion in funds under management in September, down from $39 billion a month ago. The fund manager hasn't seen funds under management this low since 2014.
The stock might be brutally oversold but continued to experience weakness on Monday, down 4.5% in afternoon trade.
Magellan 12-month price chart (Source: TradingView)
On a side note, Cromwell Property Group (ASX: CMW) said its Chief Financial Officer Michael Wilde will be leaving the firm at the end of December 2023. The company's shares are down 48% year-to-date to levels not seen since 2005.
Cromwell Property Group 20-year price chart (Source: TradingView)
