Top 2 Utilities Stocks That May Crash This Quarter

National Grid Plc (NGG) and American Electric Power Company Inc (AEP), two utility stocks, are exhibiting overbought conditions with Relative Strength Index (RSI) values of 70.9 and 72.4, respectively. NGG recently gained 1.9% to close at $77.75, near its 52-week high, while AEP rose 1.6% to $121.43, also approaching its 52-week peak, following its strategic partnership announcement with Quanta Services. These elevated RSI readings, despite recent price appreciation and positive developments for AEP, may signal a short-term caution for momentum-focused investors.

Analysis

National Grid Plc (NGG) and American Electric Power (AEP), both utility stocks, are currently exhibiting overbought conditions, with Relative Strength Index (RSI) values of 70.9 and 72.4 respectively, surpassing the typical 70-threshold. Both stocks have experienced notable short-term appreciation, gaining approximately 4% over the past five days and closing near their 52-week highs on Friday, November 10, 2025. This technical signal suggests potential for short-term price consolidation or reversal.

NGG closed at $77.75, up 1.9% on Friday, with its RSI at 70.9. The article, however, attributes positive quarterly results and strong organic growth in the long-term care sector to "American Healthcare," which is an unrelated entity to NGG's utility operations, implying the recent NGG price action is primarily technically driven. NGG's Edge Stock Ratings show a Momentum score of 68.26 and a Value score of 60.95.

AEP closed at $121.43, rising 1.6% on Friday, with a higher RSI of 72.4. This recent price strength follows its strategic partnership announcement with Quanta Services (PWR) on November 5th, focused on advancing transmission and power infrastructure. While this partnership represents a positive fundamental development for AEP, the elevated RSI indicates that the stock may be technically extended.

The overall market sentiment is mildly negative and cautious regarding these developments, with individual ticker sentiments for NGG at -0.3 and AEP at -0.1. This cautious outlook appears to be driven by the overbought technical indicators, suggesting that despite some positive fundamental news (for AEP), the recent price momentum might face near-term resistance or correction.

Key Decisions for Investors

• Investors focused on short-term momentum should exercise caution with National Grid (NGG) and American Electric Power (AEP) due to their overbought RSI levels, suggesting potential for near-term price consolidation or reversal
• Consider monitoring these stocks for technical pullbacks before initiating new long positions or for potential profit-taking on existing short-term holdings
• For AEP, evaluate the long-term fundamental benefits of its strategic partnership against the immediate technical overextension