RSI Analysis of Blue Chip Stocks; Cisco (CSCO) Lives in Overbought Territory – CSCO, BAC, TRV, JNJ, HPQ

  on Dec 14,2012 Posted in Finance ,Investment Ideas
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Relative Strength Index or RSI value is a technical momentum indicator that evaluates the magnitude of recent gains to recent losses in an attempt to decide overbought and oversold conditions of a security.

Relative Strength Index is a technical momentum indicator that compares the magnitude of most recent gains to that of recent losses in a key to decide overbought and oversold conditions of an asset.

The RSI value ranges from 0 to 100. A security is deemed to be overbought once the Relative Strength Index approaches a level of 70, showing that the asset may be getting overvalued and is a good stock for a pullback.

Likewise, if the RSI approaches 30 so it shows that the asset may be getting oversold and therefore is probable to become undervalued. In this article we will discuss Dow Jones stocks with higher RSI value. Earlier we discussed worst year to date performers in Nasdaq.

Cisco Systems, Inc (NASDAQ:CSCO) offered 16.73% return on equity while its return on assets was 9.30. The corporation has the market capitalization of 104.80 billion while its beta factor was 1.24, beta factor is used to measure risk associated with stock. The Institutional investors own 72% shares of the company while its 5.31 billion shares were outstanding. RSI value of CSCO was 71.06 while average volume was 43.16 million. Cisco Systems was only blue chip stock lives in overbought territory.

Bank of America Corp (NYSE:BAC) has market capitalization of 113.60 billion while offered 0.25% Return on assets.  The biggest bank in U.S. has institutional ownership was 56% and its EPS was booked as 0.36. Its RSI was recorded as 67.60. Shares of the company were moving ahead of 50 days simple moving average with 10.12 while with 20 days simple moving average with 6.59%. Net profit margin of Bank of America was 6.08% while operating profit margin was 8.27%.

The Travelers Companies, Inc (NYSE:TRV) has RSI value of 67.59 while average trading volume was 2.65 million. The company has market capitalization of 27.93 billion while its price to earnings ratio was 10.46. TRV offered earning per share of 7.00 while its 381.45 million shares were outstanding. The institutional investors own 85% shares of the company. Travelers Companies has return on equity ratio of 10.83% while ROA was 2.62%.

Johnson & Johnson (NYSE:JNJ) has return on equity ratio of 13.58% while its return on investment ratio was 8.82%. The drug giant offered 7.08% as return on assets. JNJ has market capitalization of $196.07 billion while its EPS was 3.04. Its RSI value was 64.81.

Hewlett-Packard Company (NYSE:HPQ) has market capitalization of 28.51 billion while offered P/S ratio of 0.24. The Beta factor, which is used as a measure of company’s volatility in relation to the market, was 1.07 while the current ratio of the world’s biggest personal computer maker was 1.09. The corporation has ROE ratio of -41.43% while ROI value remained -18.02%. RSI of the company was booked as 64.54.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.



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