Palomar (PLMR) Enters Overbought Territory: Is A Drop Coming?
Palomar Holdings, Inc. PLMR has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because PLMR is now in overbought territory with an RSI value of 72.90.
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 PLMR’s high RSI value isn’t the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions Palomar’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 PLMR’s prospects for the near term.
Over the past one month, investors have witnessed 2 earnings estimate revision lower compared to none higher for the current year. The consensus estimate for PLMR’s has also been on a downward trend over the same time period too, as the estimates have fallen 46.1% over the last two months.
If this wasn’t enough, Palomar 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.
Just Released: Zacks’ 7 Best Stocks for Today
PLMRrts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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
Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
