Bonanza Creek Energy, Inc. has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because BCEI is now in overbought territory with an RSI value of 72.55.
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 BCEI’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Bonanza Creek Energy’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 BCEI’s prospects for the near term.
Over the past one month, investors have witnessed 1 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for BCEI’s has also been on a downward trend over the same time period too, as the estimates have fallen 0.3% over the last two months.
If this wasn’t enough, Bonanza Creek Energy 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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Bonanza Creek Energy Enters Overbought Territory
Bonanza Creek Energy, Inc. has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because BCEI is now in overbought territory with an RSI value of 72.55.
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 BCEI’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Bonanza Creek Energy’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 BCEI’s prospects for the near term.
Over the past one month, investors have witnessed 1 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for BCEI’s has also been on a downward trend over the same time period too, as the estimates have fallen 0.3% over the last two months.
If this wasn’t enough, Bonanza Creek Energy 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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.
This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.
See their latest picks free >>