As of Aug. 5, 2026, three stocks in the communication services sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

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

Snap Inc (NYSE:SNAP)

  • On Aug. 3, Snap reported better-than-expected second-quarter financial results and issued third-quarter sales guidance with its midpoint above estimates. "Q2 reflects the progress we are making to strengthen our core business and build a more durable financial foundation for Snap," said Evan Spiegel, co-founder and CEO. The company’s stock gained around 22% over the past five days and has a 52-week high of $9.54.
  • RSI Value: 81                                   
  • SNAP Price Action: Shares of Snap rose 14.9% to close at $5.79 on Tuesday.
  • Edge Stock Ratings: 9.87 Momentum score.

Stagwell Inc (NASDAQ:STGW)

  • On July 30, Stagwell posted better-than-expected quarterly results. “Our second quarter results demonstrate Stagwell is thriving in today’s AI era. Stagwell’s unique combination of software, services and engineers is being embraced by the industry leading to another record-breaking Net New Business quarter of $171 million, highlighted by recent wins with IBM, Adobe, Mondelez and Heineken,” said Mark Penn, Chairman and CEO of Stagwell. The company’s stock gained around 19% over the past month and has a 52-week high of $9.02.
  • RSI Value: 79.4
  • STGW Price Action: Shares of Stagwell rose 3.6% to close at $9.01 on Tuesday.

EchoStar Corp (NASDAQ:ECHO)

  • On Aug. 3, EchoStar posted second-quarter adjusted EPS of 14 cents. The company’s stock gained around 6% over the past five days and has a 52-week high of $104.74.
  • RSI Value: 76.5
  • ECHO Price Action: Shares of EchoStar gained 7% to close at $91.60 on Tuesday.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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