Investors focused on momentum might want to take notice of two financial stocks currently displaying overbought signals: Morningstar Inc. (MORN) and MSCI Inc. (MSCI). The Relative Strength Index (RSI) is a widely used tool for gauging a stock’s price momentum. An RSI reading above 70 typically suggests an asset is overbought, potentially indicating a short-term price correction.
Morningstar, a leading provider of investment research and data, is currently trading with an RSI of 77.50. The stock has enjoyed a positive run in recent weeks, gaining around 10% in the past month and hitting a 52-week high of $335.67. On October 8th, UBS analyst Alex Kramm initiated coverage on Morningstar with a Buy rating and a price target of $390.
MSCI, a global provider of investment indices and analytics, also shows an overbought signal with an RSI of 71.97. The stock has risen around 7% over the past month and has reached a 52-week high of $617.39. On October 2nd, Evercore ISI Group analyst David Motemeden initiated coverage on MSCI with an Outperform rating and a price target of $690.
While both stocks are currently showing overbought signals, it’s important to remember that these are short-term indicators. Analyst sentiment remains positive for both companies, suggesting potential for further upside in the long term. Investors should carefully consider all factors before making any trading decisions.
