Phreesia (PHR) is overbought: is a drop coming?
Phreesia, Inc. PHR has been increasing lately, but there could definitely be problems on the horizon for this company. This is because PHR is now in overbought territory with an RSI value of 70.05.
What is the RSI?
RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technique-oriented investors. It compares the average of the gains on the closed days to the average of the losses on the closed days; Readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.
Other factors
Still, the high value of PHR’s RSI isn’t the only reason investors are concerned, as there have been some decidedly negative earnings estimate revisions for Phreesia stock recently. This is especially true when investors delve into some of these revisions in order to get a better idea of PHR’s outlook in the near term.
In the past month, investors have seen 3 revisions to downward earnings estimates compared to no upward revisions for the current year. The consensus estimate of PHRs also trended downward over the same period, as estimates fell 23.5% in the past two months.
If that wasn’t enough, Phreesia also has a Zacks Rank # 4 (Sell) which puts him in bad company among his peers. So, considering all of these factors, investors may consider exiting this title now before it falls back to Earth. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.