The Iran War has turned energy stocks from laggards to leaders, but the rally in this sector appears to be getting a little long in the tooth.

Now that AI and semiconductors have retaken control of the market, the energy sector is looking vulnerable, and many stocks are triggering overbought signals.

Today, we'll look at five stocks that are flashing overbought signals on key technical indicators, such as Bollinger Bands, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) indicator.

Each of these technical tools measures momentum in a different fashion, and they are frequently used together to identify momentum changes (or continuation patterns).

Here are five high-flying energy stocks that look ripe for profit-taking.

Bloom Energy Corp.

Earlier this year, Bloom Energy (NYSE:BE) looked like it was struggling to repeat its 2025 performance. The stock gained nearly 300% last calendar year, but spent most of 2026 trading in a tight range between $130 and $160.

But when the market turned in late March, Bloom Energy's stock got back on the bullish train. BE shares have more than doubled in the last month alone, and now are up more than 200% year-to-date (YTD).

The company absolutely crushed its Q1 2026 earnings report on April 28, posting EPS and revenue figures well above analysts' projections with total sales up more than 130% year-over-year (YOY). Management also now expects full-year 2026 guidance of $3.4 to $3.8 billion, following record revenue of over $2 billion in 2025.

Bloom Energy's partnership with Brookfield to provide power to data centers provides it with durable, sustainable revenue for years to come, thereby maintaining the long-term growth story.

However, the stock is looking incredibly overbought following its impressive month, and investors are getting signals that it’s time to take profits. The share price has reached the upper Bollinger Band following a very volatile few trading sessions, and the RSI reading of 77 shows a highly susceptible rally. 

How to Trade a Market That Won't Pick a Direction
Tech keeps pushing higher, pulling back, and reacting to every new headline. These are the conditions where one-sided trades get caught off guard. Matt Maley is taking a different approach, using a two-sided TQQQ strategy to stay positioned either way. On May 6, he shows how he structures these trades and manages them as the move develops. Secure Your Spot

Kodiak Gas Services Inc.

Kodiak Gas Services (NYSE:KGS) is a $6 billion market cap “picks and shovels” play in the energy industry. The company provides infrastructure services to help oil and gas companies extract and transport crude oil and natural gas.

The stock has gone parabolic in the first four months of 2026, returning more than 80% YTD thanks to soaring energy prices and domestic demand. But a quick look under the hood shows a company that still needs to justify its current valuation.

The stock trades at nearly 80 times earnings, and the company has missed EPS projections in six of the last seven quarters. Kodiak Gas Services is scheduled to report its Q1 2026 results on May 15, and another miss after this stock run-up could result in a swift reversal.

KGS shares are trading near the upper Bollinger Band, and the RSI is deep into overbought territory at 82. With a pricey valuation, overbought technicals, and another earnings report on deck, taking profits here is likely a wise decision.

Tenaris S.A.

Tenaris (NYSE:TS) is a Luxembourg-based manufacturer of steel pipes and tubes used in a variety of industrial applications, but its products are especially prominent in the oil and gas industry.

The company has a market cap of $32 billion and generated nearly $12 billion in sales in 2025. Despite being a consistent earnings winner with a reasonable valuation, Tenaris shares are looking very overbought at the moment and could be hit by profit-taking in the near future.

The stock had been a steady but unspectacular compounder, growing from $20 per share to $40 per share between 2022 and 2026. But now the stock has soared from $40 to $63 in just 4 months, despite little change in the company's earnings growth trajectory. 

Tariff relief is likely a significant driver of the 2026 rally, as Tenaris's products faced stiff import tariffs under the Trump administration's previous policies. While the new Section 232 tariffs have revived some of these taxes, the stock's relief rally continues.

However, technical signals indicate waning momentum in the uptrend. The Bollinger Bands and RSI both highlight an overextended rally, and the MACD indicator shows that buying pressure is beginning to weaken. Tenaris reports earnings on May 5, and will likely need to crush estimates to keep this momentum going.

DT Midstream Inc.

DT Midstream (NYSE:DTM) is a domestic energy pipeline company operating in Texas and New Mexico with a $15 billion market cap and approximately $1.2 billion in annual sales. The company reported earnings last week on April 30, and the stock jumped more than 6% following the release. DT Midstream posted a solid top- and bottom-line earnings beat, including a 12% EPS upside surprise.

However, management only reaffirmed its full-year 2026 guidance and also decided to keep the dividend payout flat despite record quarterly revenue. Analysts at Barclays raised their price target to $143 following the earnings release, but this is still below the current market price.

The post-earnings move actually took the stock price outside the upper range of the Bollinger Bands, which is often considered a bearish reversal signal. An overbought RSI also confirms the potential trend shift, and a pullback to the $135 area wouldn't be surprising from here.

Enerflex Ltd.

Enerflex Ltd. (NYSE:EFXT) is a small-cap provider of natural gas processing equipment. Based in Calgary, the company has a $3.3 billion market cap and supports clients across the oil and gas stream spectrum. The Iran War has been a major catalyst for the company's stock, as soaring demand for Canadian gas has driven energy infrastructure investment. EFXT shares are up more than 75% YTD, but it might be time to take profits ahead of the company's May 7 earnings report. 

The Bollinger Bands have widened drastically during the stock's run-up, highlighting the volatility of the uptrend. A large gap between the deviations is often a red flag that reversion to the mean is coming, and the RSI is extremely high, over 77.

Image via Shutterstock