Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the industrials sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
Brady Corporation (NYSE: BRC)
- Brady reported better-than-expected results for its fourth quarter. The company's Board of Directors approved an increase in the annual dividend to shareholders from $0.92 to $0.94 per share, representing a 2.2% increase. The company’s stock has a 52-week high of $58.20. .
- RSI Value: 77.57
- BRC Price Action: Shares of Brady fell 1.9% to close at $55.51 on Wednesday.
- Global Industrial posted better-than-expected quarterly results. Barry Litwin, Chief Executive Officer, said, "We had a very productive second quarter as we continued to execute on our ACE strategy, made further investments in growth initiatives and completed the strategic acquisition of Indoff in late May." The company’s stock has a 52-week high of $34.60.
- RSI Value: 70.13
- GIC Price Action: Shares of Global Industrial Company fell 0.2% to close at $33.93 on Wednesday.
- GEE Group posted upbeat earnings for its third quarter and announced a cooperation agreement with Red Oak Partners. Derek E. Dewan, Chairman and Chief Executive Officer of GEE Group, commented, "We are once again pleased with our results for the third quarter and year to date for fiscal 2023 in light of current economic conditions." The company has a 52-week high of $0.80.
- RSI Value: 70.93
- JOB Price Action: Shares of GEE Group fell 0.1% to close at $0.6093 on Wednesday.
- Veritiv reported better-than-expected second-quarter financial earnings. "The second quarter highlighted the value of our diversified and complementary portfolio of products and industry verticals. Despite challenging macroeconomic conditions, Adjusted EBITDA for both Packaging and Facility Solutions improved sequentially and on a year-over-year basis, achieving record Adjusted EBITDA margins for these segments," said Sal Abbate, Chief Executive Officer. The company’s 52-week high is $169.85.
- RSI Value: 77.81
- VRTV Price Action: Shares of Veritiv rose 0.3% to close at $168.56 on Wednesday.
- RB Global, said its subsidiary Ritchie Bros. Auctioneers (America), Inc. sold nearly US$44 million of equipment for industry-leader WB Pipeline LLC on August 9, in Splendora, Texas. The company has a 52-week high of $69.69.
- RSI Value: 70.64
- RBA Price Action: Shares of RB Global rose 0.9% to settle at $65.00 on Wednesday.
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