Sometimes a stock runs too hot, too fast. That's the story playing out with two utilities companies right now, where momentum indicators are flashing warnings that these recent winners might be due for a breather.
The Relative Strength Index (RSI) is a momentum indicator that compares a stock's strength on up days versus down days. It's a useful tool for traders trying to gauge whether a stock has gotten ahead of itself. When the RSI climbs above 70, it typically signals that an asset is overbought and could be vulnerable to a pullback.
As of November 24, 2025, two stocks in the utilities sector are showing readings that should grab the attention of investors who care about momentum signals.
UGI Corp Running Hot After Record Earnings
UGI Corp (UGI) is sporting an RSI of 88.9, which is exceptionally high by any standard. The stock has surged roughly 12% over the past month, reaching a 52-week high of $37.78.
The rally has legitimate reasons behind it. On November 20, UGI reported better-than-expected fourth-quarter adjusted earnings per share. "UGI delivered an outstanding year with record adjusted earnings per share that exceeded our revised guidance range," said Robert Flexon, President and Chief Executive Officer of UGI Corporation.
Shares of UGI jumped 7.1% to close at $37.61 on Friday. The stock carries a momentum score of 74.54 and a value score of 64.35.
New Jersey Resources Also Showing Overbought Signals
New Jersey Resources Corp (NJR) isn't quite as stretched as UGI, but its RSI of 74.5 still puts it firmly in overbought territory. The stock has gained around 6% over the past month and recently hit a 52-week high of $51.94.
On November 19, New Jersey Resources posted mixed quarterly results, though management sounded confident about the company's trajectory. Steve Westhoven, President and CEO, said, "Fiscal 2025 was another strong year for NJR. We delivered NFEPS at the high end of our guidance range, surpassing our initial annual NFEPS guidance for the fifth consecutive year. We believe our performance reflects the strength of our complementary businesses, including record investments at NJNG, the highest annual installed capacity additions by CEV in our history, and strategic milestones at Adelphia Gateway and Leaf River."
Shares of New Jersey Resources rose 1.6% to close at $48.83 on Friday.
What This Means for Investors
An overbought reading doesn't mean a stock will definitely fall, but it does suggest the recent rally has been aggressive enough that some consolidation or profit-taking wouldn't be surprising. For momentum traders, these elevated RSI levels serve as a yellow flag worth monitoring closely in the weeks ahead.
