When a stock gets too hot too fast, momentum traders start getting nervous. And right now, three communication services companies are flashing the kind of technical signals that make those traders reach for the sell button.
The Relative Strength Index (RSI) is one of those momentum indicators that sounds complicated but really isn't. It compares how strong a stock is on up days versus down days, giving you a sense of whether the recent move has gotten ahead of itself. The general rule: when RSI climbs above 70, an asset is considered overbought and potentially due for a pullback. Not a guarantee, mind you, but a warning sign worth paying attention to.
As of Jan. 12, 2026, here are three communication services stocks that have pushed into overbought territory.
Scholastic Corp (SCHL)
The children's book publisher has been on a tear lately, with shares climbing roughly 15% over the past month. The catalyst? On Jan. 5, Scholastic promoted Jeffrey Mathews to president of Scholastic Education, adding to his existing role as chief growth officer. Investors clearly liked the move.
RSI Value: 74.5
SCHL Price Action: Shares of Scholastic gained 2.7% to close at $33.44 on Friday, just shy of the 52-week high of $33.46.
Edge Stock Ratings: The stock carries a momentum score of 92.14, though its value score sits at a more modest 49.04.
Iridium Communications Inc (IRDM)
The satellite communications company has seen its stock jump about 8% over just the past five days. Back on Dec. 4, Iridium announced it was adding Louis Alterman to its board of directors, though the recent momentum appears to be building on something more than just that appointment.
RSI Value: 70.1
IRDM Price Action: Shares of Iridium Communications rose 4.3% to close at $19.34 on Friday. The stock has a 52-week high of $34.45.
Sphere Entertainment Co (SPHR)
The Las Vegas entertainment venue operator got a boost on Jan. 9 when Seaport Global analyst David Joyce upgraded the stock from Neutral to Buy and set a $106 price target. That helped push shares up around 6% over the past month.
RSI Value: 70.2
SPHR Price Action: Shares of Sphere Entertainment gained 4.3% to close at $95.26 on Friday, approaching the 52-week high of $97.20.
The big question now is whether these stocks can keep climbing or if they'll need to catch their breath. Overbought conditions don't mean a stock will definitely fall, but they do suggest the easy money might already be made. For traders who use momentum as a key decision-making factor, these RSI readings are worth keeping on your radar.