Five Overbought Materials Stocks to Watch: PTVE, ACNT, X, SMID, RYAM
As of January 11, 2024, five stocks in the materials sector are showing signs of being overbought. These stocks could be flashing a warning to investors who value momentum as a key criteria in their trading decisions. 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 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 a look at the latest list of major overbought players in the materials sector:
1. Pactiv Evergreen Inc. (PTVE)
– On November 1, Pactiv Evergreen posted upbeat quarterly earnings. The company’s stock jumped around 15% over the past month and has a 52-week high of $14.85.
– RSI Value: 74.07
– PTVE Price Action: Shares of Pactiv Evergreen fell 1.7% to close at $14.25 on Wednesday.
2. Ascent Industries Co. (ACNT)
– On December 26, 2023, Ascent Industries reported the sale of the business of Specialty Pipe & Tube for around $55 million in an all-cash deal. The company’s stock gained around 27% over the past month and has a 52-week high of $11.56.
– RSI Value: 71.02
– ACNT Price Action: Shares of Ascent Industries fell 0.4% to close at $9.81 on Wednesday.
3. United States Steel Corporation (X)
– On December 18, Nippon Steel announced it will acquire United States Steel for $55 per share in an all-cash transaction. The company’s stock jumped around 34% over the past month and has a 52-week high of $50.20.
– RSI Value: 77.00
– X Price Action: Shares of United States Steel slipped 0.3% to close at $48.28 on Wednesday.
4. 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 gained around 10% over the past month and has a 52-week high of $42.50.
– RSI Value: 73.70
– SMID Price Action: Shares of Smith-Midland gained 1.3% to close at $40.20 on Wednesday.
5. Rayonier Advanced Materials Inc. (RYAM)
– On November 7, RYAM posted downbeat quarterly results. The company’s stock jumped around 23% over the past month and has a 52-week high of $8.65.
– RSI Value: 71.00
– RYAM Price Action: Shares of Rayonier Advanced Materials gained 0.2% to close at $4.26 on Wednesday.
These stocks have all shown strong momentum in recent weeks but may be reaching overbought levels according to their RSI values. Investors should exercise caution and consider other factors before making trading decisions based solely on momentum indicators.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All rights reserved.
