Four Overbought Materials Stocks to Watch Out For
As of February 7, 2024, four stocks in the materials sector are showing signs of being overbought. For investors who value momentum as a key criterion in their trading decisions, these stocks might be flashing a warning signal. The Relative Strength Index (RSI) is a momentum indicator that compares a stock’s strength on days when prices go up to its strength on days when prices go down. When the RSI is above 70, an asset is typically considered overbought.
Here’s a list of the major overbought players in the materials sector:
1. ASP Isotopes Inc. (ASPI):
– On January 10, ASP Isotopes issued a corporate update regarding its Pretoria, South Africa operations.
– The company’s stock has gained around 35% over the past five days and has a 52-week high of $3.1299.
– RSI Value: 81.69
– ASPI Price Action: Shares of ASP Isotopes gained 6.9% to close at $3.10 on Tuesday.
2. Smith-Midland Corporation (SMID):
– On December 12, Smith-Midland received a $3.8 million J-J Hooks Barrier Rental contract for I-64 in Virginia.
– The company’s stock has gained around 12% over the past five days and has a 52-week high of $45.55.
– RSI Value: 75.27
– SMID Price Action: Shares of Smith-Midland jumped 5% to close at $45.07 on Tuesday.
3. Eagle Materials Inc. (EXP):
– On January 25, Eagle Materials posted better-than-expected quarterly results.
– The company’s stock has gained around 16% over the past month and has a 52-week high of $237.43.
– RSI Value: 77.59
– EXP Price Action: Shares of Eagle Materials gained 1% to close at $235.82 on Tuesday.
4. CEMEX, S.A.B. de C.V. (CX):
– On January 9, B of A Securities analyst Carlos Peyrelongue upgraded Cemex from Neutral to Buy and raised the price target from $8.2 to $9.
– The company’s stock has jumped around 12% over the past month and has a 52-week high of $8.69.
– RSI Value: 75.53
– CX Price Action: Shares of CEMEX gained 2.6% to close at $8.68 on Tuesday.
Investors should be cautious when considering these stocks as they might be due for a potential pullback. Overbought conditions can indicate that a stock’s price has risen too quickly and may be due for a correction. It’s important for investors to conduct thorough research and analysis before making any investment decisions.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as investment advice.
