Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Dec. 21, 2023, five stocks in the industrials 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.
Innovative Solutions and Support, Inc. (NASDAQ: ISSC)
- On Dec. 20, the company posted better-than-expected quarterly results. Shahram Askarpour, Chief Executive Officer of IS&S, said, "I am pleased to report our fifth consecutive year of both top and bottom-line growth as a result of one of the best quarters in the Company’s recent history. The results include some customer-directed accelerated shipments of the acquired Honeywell products to mitigate any impacts from potential delivery delays over the next two quarters as equipment and inventory are transferred to IS&S." The company’s stock jumped around 4% over the past five days and has a 52-week high of $8.99 .
- RSI Value: 79.44
- ISSC Price Action: Shares of Innovative Solutions and Support gained 5.3% to close at $8.00 on Wednesday.
- On Dec. 20, Hyliion announced a $20 million stock repurchase plan. The company’s stock gained around 26% over the past five days and has a 52-week high of $3.88.
- RSI Value: 73.63
- HYLN Price Action: Shares of Hyliion Holdings gained 16.8% to close at $0.8185 on Wednesday.
- On Dec. 19, Steelcase reported better-than-expected third-quarter adjusted EPS results and issued fourth-quarter guidance. "Consistent with our expectations, orders remained relatively stable on a sequential basis this quarter and reflected strong growth versus the prior year," said Sara Armbruster, president and CEO. The company’s stock jumped around 9% over the past five days and has a 52-week high of $14.47.
- RSI Value: 85.29
- SCS Price Action: Shares of Steelcase gained 10.9% to close at $14.09 on Wednesday.
- On Dec. 20, Toro reported better-than-expected fourth-quarter financial results and issued guidance. Richard M. Olson, chairman and chief executive officer said, "Demand for our innovative products was robust across much of our professional segment this year, with notable strength in our underground and specialty construction, and golf and grounds businesses." The company’s stock gained around 12% over the past five days and has a 52-week high is $117.66.
- RSI Value: 81.65
- TTC Price Action: Shares of Toro Company gained 8.9% to close at $97.21 on Wednesday.
- On Nov. 15, ZIM Integrated Shipping Services reported a third-quarter sales decline of 61% Y/Y to $1.27 billion, missing the consensus of $1.32 billion. Eli Glickman President & CEO said,"We are currently in a transition period, which we expect will extend into 2024, during which we should gradually see the benefits of the decisive actions we have taken to enhance ZIM's commercial and operational resilience." The company’s stock jumped around 30% over the past five days and has a 52-week high of $25.12.
- RSI Value: 73.71
- ZIM Price Action: Shares of ZIM Integrated Shipping Services gained 3.7% to close at $10.01 on Wednesday.
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