Back to top

Tale of the Tape

Zacks Equity Research

PennantPark Investment (PNNT) is in Overbought Territory: What's Next?
December 22, 2016

PNNT

Trades from $3

PennantPark Investment Corporation (PNNT - Free Report) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because MTW is now in overbought territory with an RSI value of 72.34.

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 PNNT’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in PennantPark Investment’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 PNNT’s prospects for the near term.

Over the past two months, investors have witnessed 7 earnings estimates revision lower compared to none higher for the current year. The consensus estimate for PNNT has also been on a downward trend over the same time period too, as the estimate has fallen from $0.99/share two months ago to just $0.84/share today.

If this wasn’t enough, PennantPark Investment 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’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.Click here for Zacks' private trades >>





In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


PennantPark Investment Corporation (PNNT) - free report >>