RSI Analysis of S&P 500 Components; Top Five Stocks with Higher RSI Value in Review – RHI, F, NYX, GNW, HRL

  on Jan 07,2013 Posted in Finance ,Investment Ideas
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Relative strength index is a technical indicator used in financial markets analysis. RSI analysis is intended to chart the present and historical strength or weakness of a security or market based on the ending prices of a most recent trading session. RSI should not be confused with relative strength.

The Relative strength index is classified as a momentum oscillator, gauging the velocity and magnitude of directional price movements.

The Relative strength index is most typically used on a 14 day timeframe, gauged on a scale from 0 to 100, with high at 70 while low end marked at 30. The simple rule is that values more than 70 indicates overvaluation and hence selling where as values lower than 30 suggest undervaluation or buying.

In this article we will discuss S&P 500 stocks with RSI value over 70 and considered as overvalued. Due to the short span of time we will discuss only top five stocks with higher RSI value.

Robert Half International Inc (NYSE:RHI) offered 23.66% return on equity while its return on assets was 14.29. The Menlo Park, California based company has the market capitalization of 4.70 billion while its beta factor was 1.16, beta factor is used to measure risk associated with stock. The Institutional investors own 88% stock of the company while its 140.74 million shares were outstanding. RSI value of RHI was 85.88 while average volume was 1.53 million.

Ford Motor Company (NYSE:F) has market capitalization of 51.74 billion while offered 10.18% Return on assets. The major United States based car maker has institutional ownership of 51.88% and its EPS was recorded as 4.42. Its RSI was booked as 83.75. Shares of the company were moving ahead of SMA 50 with 19.80% while with SMA 20 with 13.23%. Net profit margin of Ford Motor was 13.36% while operating profit margin was 4.85%. The company earned $17.68 billion in previous 12 months.

NYSE Euronext (NYSE:NYX) has RSI value of 83.68 while average trading volume was 6.50 million. The company has market capitalization of 7.96 billion while its price to earnings ratio was 19.41. The company offered earning per share of 1.69 while its 243 million shares were outstanding. The institutional investors own 72% stock. NYSE Euronext has return on equity ratio of 6.45% while ROA was 3.28%. Dividend yield was booked as 3.67%.

Genworth Financial Inc (NYSE:GNW) has return on equity ratio of 1.92% while its return on assets ratio was 0.38%. The company has market capitalization of $4.07 billion while its EPS was 0.61. Its RSI value was 82.25 while stock volatility for the month was 3.45%. The company earned $299 million on $10.11 billion sales.

Hormel Foods Corporation (NYSE:HRL) has market capitalization of 9.04 billion while offered P/S ratio of 1.10. The Beta factor, which is used as a measure of company’s volatility in relation to the market, was 0.46 while the current ratio of Austin, Minnesota based company was 2.95 while quick ratio was 1.74. The company has ROE ratio of 18.26% while ROI value remained 13.96%. RSI of the company was recorded as 85.21.

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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