Top 4 Materials Stocks That May Collapse This Quarter
Portfolio Pulse from Avi Kapoor
Four materials sector stocks are considered overbought based on their Relative Strength Index (RSI) values, which may signal a potential short-term decline. Alcoa Corporation (AA), Glatfelter Corporation (GLT), Aspen Aerogels, Inc. (ASPN), and Ingevity Corporation (NGVT) have all seen significant price increases over the past month, with their RSI values exceeding 70, indicating they may be overbought.
December 26, 2023 | 12:17 pm
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NEGATIVE IMPACT
Alcoa Corporation's stock has risen 28% over the past month, with an RSI of 73.85, signaling it may be overbought and could face a short-term decline.
Alcoa's recent appointment of a new EVP and COO and its significant price jump could lead to profit-taking, especially with an RSI above the overbought threshold of 70.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Aspen Aerogels' stock has soared 42% over the past month, with an RSI of 77.89, the highest among the mentioned stocks, which could lead to a short-term downturn.
Aspen Aerogels' recent stock offering and sharp price increase have driven its RSI to extremely overbought levels, suggesting a potential upcoming correction.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Glatfelter Corporation's stock has increased 37% over the past month, with an RSI of 72.98, indicating potential overbought conditions and a possible short-term price correction.
Despite a decline in Q3 sales, Glatfelter's stock has surged, but the high RSI suggests the stock may be due for a short-term pullback.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Ingevity Corporation's stock has gained 24% over the past month, with an RSI of 71.49, hinting at overbought conditions that may result in a short-term price pullback.
Ingevity's in-line earnings and recent stock performance have led to an RSI just above the overbought level, which may precede a short-term price correction.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90