National CineMedia, Inc. (NCMI - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because NCMI is now in overbought territory with an RSI value of 70.74.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet NCMI’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions National CineMedia’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of NCMI’s prospects for the near term.
Over the past one month, investors have witnessed 3 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for NCMI’s has also been on a downward trend over the same time period too, as the estimates have fallen more than 100% over the last two months.
If this wasn’t enough, National CineMedia also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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National CineMedia, Inc. (NCMI - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because NCMI is now in overbought territory with an RSI value of 70.74.
What is RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other Factors
Yet NCMI’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions National CineMedia’s stock as of late. This is especially true when investors dive into some of these revisions in order to get a better picture of NCMI’s prospects for the near term.
Over the past one month, investors have witnessed 3 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for NCMI’s has also been on a downward trend over the same time period too, as the estimates have fallen more than 100% over the last two months.
If this wasn’t enough, National CineMedia also has a Zacks Rank #5 (Strong Sell) which puts it into unfortunate company among its peers. So, given all of these factors, investors may want to consider exiting this stock now before it falls back to Earth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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