U.S. markets close in 15 minutes
  • S&P 500

    -22.10 (-0.56%)
  • Dow 30

    -239.01 (-0.71%)
  • Nasdaq

    -51.13 (-0.46%)
  • Russell 2000

    -14.83 (-0.82%)
  • Crude Oil

    +0.13 (+0.18%)
  • Gold

    +8.30 (+0.46%)
  • Silver

    +0.48 (+2.08%)

    -0.0018 (-0.17%)
  • 10-Yr Bond

    +0.0760 (+2.18%)

    +0.0020 (+0.17%)

    -0.0550 (-0.04%)

    -78.81 (-0.46%)
  • CMC Crypto 200

    -3.29 (-0.81%)
  • FTSE 100

    +4.46 (+0.06%)
  • Nikkei 225

    +326.58 (+1.18%)

Monroe Capital Corp (MRCC) is Overbought: Is A Drop Coming?

Monroe Capital Corporation MRCC has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because MRCC is now in overbought territory with an RSI value of 71.72.

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 MRCC’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Monroe Capital Corp’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 MRCC’s prospects for the near term.

Over the past one month, investors have witnessed 3 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for MRCC’s has also been on a downward trend over the same time period too, as the estimates have fallen 3.8% over the last two months.

If this wasn’t enough, Monroe Capital Corp also has a Zacks Rank #4 (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.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Monroe Capital Corporation (MRCC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research