Top 5 Materials Stocks That May Crash This Quarter
Portfolio Pulse from Avi Kapoor
Five materials sector stocks are showing signs of being overbought according to their Relative Strength Index (RSI) values, which may indicate a potential short-term pullback. Ranpak Holdings Corp. (PACK), Stepan Company (SCL), Orion S.A. (OEC), Ferroglobe PLC (GSM), and H.B. Fuller Company (FUL) have all seen significant price increases over the past month, with their RSI values exceeding the overbought threshold of 70.
December 08, 2023 | 1:37 pm
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H.B. Fuller Company posted weaker earnings but saw a 12% stock increase over the past month, with an RSI of 75.80, indicating potential overbought conditions.
FUL's RSI of 75.80 could lead to a price correction as the stock may be overbought, prompting investors to secure profits.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Ferroglobe PLC reported better-than-expected Q3 earnings and a 30% stock increase over the past month, with an RSI of 75.06, pointing to overbought conditions.
GSM's RSI above 70 suggests the stock may be due for a short-term retracement as the market could perceive it as overvalued.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Orion S.A. posted upbeat earnings, with the stock increasing by 22% over the past month and an RSI of 81.81, suggesting overbought territory.
OEC's RSI of 81.81 indicates that the stock may be overextended, and a short-term price drop could occur as the market digests recent gains.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Ranpak Holdings Corp. reported a narrower Q3 loss and saw a 51% stock increase over the past month, with an RSI of 71.40, signaling potential overbought conditions.
With an RSI above 70, PACK is considered overbought, which could lead to a short-term price decline as traders may take profits.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Stepan Company reported a sales decrease in Q3 but saw a 17% stock increase over the past month, with an RSI of 82.17, indicating strong overbought conditions.
SCL's high RSI of 82.17 is a strong overbought signal, which often precedes a short-term correction as investors may sell to lock in gains.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90