Top 4 Tech Stocks That May Implode This Month

Author: Lisa Levin | November 08, 2023 09:46am

The most overbought stocks in the information technology sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

Agilysys, Inc. (NASDAQ:AGYS)

• Agilysys reported better-than-expected second-quarter financial results and raised FY23 revenue guidance above estimates. "Our implementation efficiency continues to improve as the re-engineered core products and newly developed experience enhancer add-on software modules are performing well in the field and creating considerable value for customers. Excellent selling success momentum highlighted by one of our best sales quarters and the best ever first half of fiscal year April to September sales measured in annual contract value terms drove aggregate recurring revenue, product and services backlog to a near record level," said Ramesh Srinivasan, President and CEO. The company’s stock has a 52-week high of $90.87. .
• RSI Value: 71.53
• AGYS Price Action: Shares of Agilysys fell 1.2% to close at $87.10 on Tuesday.

FARO Technologies, Inc. (NASDAQ:FARO)

• Faro Technologies posted a profit for the third quarter. "Third quarter financial performance with revenue of $86.8 million and non-GAAP EPS of $0.02, exceeded the high-end of our expectations driven by a combination of moderate improvements in end market demand and operational performance," said Peter Lau, President & Chief Executive Office of FARO. The company’s stock has a 52-week high of $36.74.
• RSI Value: 73.97
• FARO Price Action: Shares of FARO Technologies fell 0.5% to close at $17.06 on Tuesday.

Kyndryl Holdings, Inc. (NYSE:KD)

• Kyndryl posted upbeat results for the second quarter. "We're strengthening and transforming our business at an accelerated pace, which is driving faster-than-anticipated margin expansion and creating future growth opportunities for Kyndryl. We're again increasing our adjusted earnings outlook for the year, and we remain on track to return to revenue growth in calendar 2025," said Kyndryl Chairman and Chief Executive Officer Martin Schroeter. The company has a 52-week high of $17.32.
• RSI Value: 73.54
• KD Price Action: Shares of Kyndryl gained 1.1% to close at $15.52 on Tuesday.

MicroStrategy Incorporated (NASDAQ:MSTR)

• MicroStrategy reported third-quarter revenue of $129.5 million, which was up 3% year-over-year. "The business intelligence industry stands at the forefront of innovation with the integration of AI-capabilities and MicroStrategy was first-to-market with our inaugural MicroStrategy AI software released in the third quarter, which leverages Microsoft Azure OpenAI," MicroStrategy CEO Phong Le said. The company’s 52-week high is $475.09.
• RSI Value: 71.03
• MSTR Price Action: Shares of MicroStrategy gained 3% to close at $473.55 on Tuesday.

 

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Posted In: AGYS FARO KD MSTR