Markets

Tecnoglass (TGLS) is Overbought: Is A Drop Coming?

Tecnoglass Inc.TGLS has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because TGLS is now in overbought territory with an RSI value of 71.83.

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 TGLS'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 Tecnoglass'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 TGLS's prospects for the near term.

Over the past two months, investors have witnessed 1 earnings estimate revisions lower compared to none higher for the current year. The consensus estimate for TGLS has also been on a downward trend over the same time period too, as the estimate has fallen from $0.97/share two months ago to just $0.69/share today.

If this wasn't enough, Tecnoglass 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.

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them 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

TECNOGLASS INC (TGLS): Free Stock Analysis Report

To read this article on Zacks.com click here.

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


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

In This Story

TGLS

Other Topics

Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More