Benzinga - by Lisa Levin, Benzinga Editor.
As of Dec. 6, 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.
Builders FirstSource, Inc. (NYSE: BLDR)
- On Nov. 1, the company posted a sales decline of 21.3% Y/Y to $4.53 billion, missing the consensus of $4.84 billion. The company’s stock jumped around 14% over the past month and has a 52-week high of $156.85 .
- RSI Value: 72.23
- BLDR Price Action: Shares of Builders FirstSource gained 4.7% to close at $143.26 on Tuesday.
- Hyster-Yale Materials Handling, Inc. (NYSE: HY)
- On Oct. 31, Hyster-Yale Materials Handling posted better-than-expected quarterly sales. The company’s stock gained around 15% over the past month and has a 52-week high of $59.64.
- RSI Value: 75.62
- HY Price Action: Shares of Hyster-Yale Materials gained 2% to close at $50.07 on Tuesday.
On Oct. 24, PACCAR reported third-quarter sales of $8.23billion, beating the consensus of $8.01 billion. Preston Feight, CEO said, "PACCAR's third quarter results reflect excellent Truck, Parts and Other gross margins of 19.5% and strong PACCAR Parts profits. PACCAR's investments in innovative new DAF, Kenworth and Peterbilt trucks and enhanced manufacturing efficiency are benefiting truck owners' operating performance and delivering strong financial results." The company’s stock jumped around 9% over the past month and has a 52-week high of $94.69.
RSI Value: 73.74
PCAR Price Action: Shares of PACCAR gained 0.2% to close at $93.87 on Tuesday.
Insteel Industries, Inc. (NYSE: IIIN)
- On Oct. 19, Insteel Industries posted weak quarterly results. "In the wake of record financial results in the previous year, fiscal year 2023 presented a highly challenging business environment that required rebalancing our supply chain, a significant downward reset of steel prices and ongoing weakness in the residential construction market. In the face of these substantial headwinds, we are encouraged by the improving underlying demand for our products during the fourth quarter despite the current competitive landscape," commented H.O. Woltz III, Insteel’s President and CEO. The company’s stock gained around 7% over the past five days and has a 52-week high is $36.80.
- RSI Value: 71.94
- IIIN Price Action: Shares of Insteel Industries fell 0.7% to close at $36.03 on Tuesday.
- On Oct. 25, Wabash National posted better-than-expected third-quarter earnings. "At Wabash, we believe in the power of strong connections," said Brent Yeagy, president and chief executive officer. "We've successfully created value by redefining our relationships with customers and suppliers, and now, we're ready to take it to the next level." The company’s stock jumped 9% over the past five days and has a 52-week high of $30.10.
- RSI Value: 73.12
- WNC Price Action: Shares of Wabash National gained 1.9% to close at $23.72 on Tuesday.
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