Quantcast

Fifth Street Senior Floating Rate (FSFR) is in Overbought Territory: What's Next?


Shutterstock photo

Fifth Street Senior Floating Rate Corp. FSFR has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because FSFR is now in overbought territory with an RSI value of 77.84.

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 FSFR's high RSI value isn't the only reason for investors to be concerned, as there has been some decidedly negative earnings estimate revisions in Fifth Street Senior Floating Rate'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 FSFR's prospects for the near term.

Over the past two months, investors have witnessed 1 earnings estimates revision lower compared to none higher for the current year. The consensus estimate for FSFR has also been on a downward trend over the same time period too, as the estimate has fallen from $0.91/share two months ago to just $0.90/share today.

If this wasn't enough, Fifth Street Senior Floating Rate 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 .

The Best Place to Start Your Stock Search

Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>


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

Fifth Street Senior Floating Rate Corp. (FSFR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks


More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research








Research Brokers before you trade

Want to trade FX?