Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of May 30, 2024, four stocks in the materials 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.
Nexa Resources S.A. (NYSE:NEXA)
- On May 2, Nexa posted better-than-expected quarterly sales. The company's CEO Ignacio Rosado said, "We began the year on a positive note, with solid operating performance in the first quarter, thanks to the commitment of our teams in reinforcing our operational strategies, enhancing our capabilities, and doubling down on execution." The company's stock gained around 9% over the past month and has a 52-week high of $8.01.
- RSI Value: 72.30
- NEXA Price Action: Shares of Nexa Resources rose 0.8% to close at $7.95 on Wednesday.
- On May 23, Jefferies analyst Philip Ng upgraded International Paper from Hold to Buy and raised the price target from $38 to $57. The company's stock gained around 27% over the past month and has a 52-week high of $46.10.
- RSI Value: 70.02
- IP Price Action: Shares of International Paper fell 1.7% to close at $44.40 on Wednesday.
- On May 1, Carpenter Technology reported mixed third-quarter financial results and raised fourth-quarter operating income guidance. “In the third quarter of fiscal year 2024 we beat our previous guidance, generating $90.0 million of adjusted operating income,” said Tony R. Thene, President and CEO of Carpenter Technology. The company's stock gained around 30% over the past month and has a 52-week high of $112.75.
- RSI Value: 72.53
- CRS Price Action: Shares of Carpenter Technology fell 0.7% to close at $111.62 on Wednesday.
- On April 29, Clearwater Paper reported better-than-expected first-quarter adjusted EPS results. “Despite the significant weather event that impacted the quarter, we delivered solid results that came in at the higher end of our expectations through strong operational execution,” said Arsen Kitch, president and chief executive officer. The company's stock jumped around 16% over the past month and has a 52-week high is $53.74.
- RSI Value: 71.66
- CLW Price Action: Shares of Clearwater Paper rose 0.8% to close at $52.41 on Wednesday.
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