The most overbought stocks in the communication services sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

EverQuote, Inc. (NASDAQ:EVER)

EverQuote posted a narrower-than-expected second-quarter loss. “In the second quarter, EverQuote reported revenue of $68.0 million and Variable Marketing Margin, or VMM, of $24.7 million, a record high as a percentage of revenue,” said Jayme Mendal, CEO of EverQuote. The company’s stock has a 52-week high of $18.86. .
RSI Value: 70.03
EVER Price Action: Shares of EverQuote gained 3.1% to close at $8.31 on Monday.

SciPlay Corporation (NASDAQ:SCPL)

SciPlay reported better-than-expected second-quarter financial results. Josh Wilson, Chief Executive Officer of SciPlay, commented, "SciPlay has consistently grown our business and led the social casino market in performance over the past six consecutive quarters. Our strong and consistent growth reflects the delivery of great gaming and entertainment experiences to our players, and the unrivaled execution of our team." The company’s stock has a 52-week high of $22.92.
RSI Value: 72.25
SCPL Price Action: Shares of SciPlay gained 0.1% to close at $22.87 on Monday.

IDT Corporation (NYSE:IDT)

IDT is expected to report its financial and operational results for the fourth quarter and fiscal year 2023 on Oct. 12, 2023. The company has a 52-week high of $35.18.
RSI Value: 75.11
IDT Price Action: Shares of IDT fell 1.1% to close at $26.86 on Monday.

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