Navistar International Corporat (NYSE:NAV) Overbought but Is That a Sell Indicator?

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Navistar International Corporat (NYSE:NAV) has reached an overbought level with an RSI(14) at 80.43.

The Relative Strength Index (RSI) is a recognized technical indicator used to determine strengthening and weakening momentum in stock price. RSI levels 70 and above are considered overbought and stocks are considered oversold at levels under 30. Overbought is a condition that occurs when price momentum is considered too high and may be susceptible to a decline.

Volatility

Navistar International Corporat’s stock has a beta of 2.76 making it more volatile than the overall market which definitionaly has a beta of 1. Stocks with a beta lower than the market are considered to be less risky and those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is sitting at 1.09. The ATR is a short term indicator of volatility. It can’t tell you the direction of the stock but indicates how likely the price is to change.

The stock is trading at $40.07 quite a bit above the 50 day moving average which is $33.45 and which is quite a bit above the 200 day moving average of $28.45. The 50 day moving average was up by +19.77% whereas the 200 day moving average was up $11.62 or +40.86%.

(NYSE:NAV) news items.

Navistar To Announce Fiscal 2017 Third Quarter Financial Results On Wednesday, September 6, 2017
Navistar Reports Third Quarter 2017 Results
Navistar To Participate In The 2017 RBC Capital Markets’ Industrials Conference
Navistar’s Troy Clarke Testifies On Behalf Of Trucking Industry At Senate Committee Hearing.

Short Interest

Short traders are feeling a little more bullish of late as shown by the motion in short interest. The company recorded a fall in short interest from August 15, 2017 to August 31, 2017 of -0.36%. Short interest fell 24,656 over that timeframe. The short-interest ratio increased to 20.0 and the percentage of shorted shares is 0.07% as of August 31.

Recent Analyst Ratings

On September 7 Deutsche Bank maintained a company rating of “Hold” but moved up the price target to $36.00 from $21.00. On June 5 the stock rating was upgraded from “Neutral” to “Outperform” by analysts at Baird.

As of the latest earnings report the EPS was $-1.57 and is projected to be $-0.56 for the current year with 98,183,000 shares outstanding. Next quarter’s EPS is forecasted to be $0.15 and the next full year EPS is anticipated to be $1.94.

Company Information

Navistar International Corporation, launched on May 26, 1993, is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Business’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Company is an international manufacturer of International brand commercial and military trucks, diesel engines, IC Bus (IC) brand school and commercial buses, as well as a provider of service parts for trucks and diesel engines. It also provides retail, wholesale and lease financing services for its trucks and parts..