The 10 most overbought and oversold ASX 200 stocks – Week 46
Neuren Pharmaceuticals is the most overbought stock on the ASX 200 with an RSI of 75.
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Mentioned
KEY POINTS
- Neuren Pharmaceuticals is the most overbought stock on the ASX 200 with an RSI of 75
- Neuren has made significant strides in 2023, including the FDA approval of DAYBUE for the treatment of Rett syndrome
- Neuren shares rallied 8.5% on November 3 after its partner Acadia announced Q3 earnings that exceeded pre-launch expectations
Shares in Neuren Pharmaceuticals (ASX: NEU) staged a ~40% rally from an eight-month low to a near all-time high in just three weeks, making it the most overbought stock on the ASX 200.
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, Neuren is the most overbought stock with an RSI of 75.
The Most Overbought Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Neuren Pharmaceuticals | 75 | 29.4% | $14.27 | $20.02 | 40.3% | |
Boral | 74 | 10.0% | $5.05 | $4.65 | -7.9% | |
Light & Wonder | 73 | 16.9% | $133.84 | na | na | |
Inghams Group | 72 | 15.1% | $3.89 | $3.95 | 1.5% | |
Lifestyle Communities | 71 | 8.4% | $17.32 | $19.19 | 10.8% | |
Spark New Zealand | 70 | 2.3% | $4.73 | $4.81 | 1.8% | |
Fortescue Metals | 70 | 10.1% | $23.64 | $18.64 | -21.2% | |
James Hardie | 69 | 10.2% | $46.06 | $53.81 | 16.8% | |
Elders | 68 | 14.9% | $6.63 | $7.26 | 9.5% | |
Pro Medicus | 68 | 2.6% | $85.66 | $78.26 | -8.6% |
'Target price' is an aggregate of broker target prices from Refinitiv. Data of Friday, 10 November 2023 close.
Neuren has made significant strikes in 2023 and here's why:
The drug: DAYBUE is a drug developed by Neuren to treat Rett syndrome, which is a rare genetic disorder that causes a variety of problems including intellectual disability, motor impairments and communication difficulties. In clinical trials, DAYBUE was shown to improve motor function and communication skills in patients.
FDA approval: DAYBUE was approved by the US Food and Drug Administration in March 2023. It is the first approved treatment for Rett syndrome.
Distribution: Neuren and Acadia Pharmaceuticals have a collaboration agreement to commercialise DAYBUE in the US and Canada. Under the terms of the agreement, Acadia has exclusive rights to commercialise the product.
Half-year 2023 earnings: Neuren reported $64.4 million in revenue and a profit after tax of $47.8 million.
Growth drivers: Further commercialisation of DAYBUE in both the US and ex-US as well as progress NNZ-2591 candidate (an investigational drug for the treatment of a range of neurodevelopmental disorders).
Neuren shares rallied 8.5% on 3 November after its partner Acadia announced Q3 earnings which included:
Acadia had 800 patients on DAYBUE as at 30 September 2023, the surge in initial demand exceeded pre-launch expectations
Q3 net sales of DAYBUE in the US of US$66.9 million
Guidance for net sales in Q4 2023 between US$80 million to US$87.5 million
Neuren said it expects royalties (assuming guidance is met) of $10.4 million in Q3 and $12.5 million to $13.7 million in Q4
The Most Oversold Stocks
Ticker | Name | RSI | 1-Month % | Close Price | Target price | Upside |
|---|---|---|---|---|---|---|
Liontown Resources | 15 | -46.6% | $1.49 | $2.11 | 41.6% | |
AMP | 22 | -15.8% | $1.00 | $1.15 | 15.2% | |
IGO | 22 | -23.6% | $8.88 | $12.46 | 40.4% | |
Woodside Energy | 25 | -10.4% | $32.03 | $35.94 | 12.2% | |
New Hope Corp | 26 | -17.9% | $5.20 | $4.91 | -5.5% | |
Alumina | 26 | -23.5% | $0.72 | $1.07 | 49.7% | |
Tabcorp | 28 | -15.9% | $0.77 | $1.10 | 43.8% | |
Chalice Mining | 28 | -24.5% | $1.59 | $3.36 | 111.1% | |
Credit Corp | 29 | -30.9% | $12.44 | $17.93 | 44.1% | |
Allkem | 29 | -24.3% | $8.86 | $14.62 | 65.1% |
'Target price' is an aggregate of broker target prices from Refinitiv. Data of Friday, 10 November 2023 close.
Different week. Same stocks. The oversold stocks list continues to feature persistently oversold names like Liontown, Credit Corp, AMP, New Hope, IGO and Chalice Mining – Which might flag waning appetite for dip buying, particularly among stocks that have disappointed in recent earnings and trading updates.
