Top 5 Industrials Stocks That You May Want To Dump In Q2

The most overbought stocks in the industrials sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

Builders FirstSource, Inc. BLDR

  • Builders FirstSource reported better-than-expected Q1 financial results and issued Q2 guidance. "We are proud of our results for the first quarter given the challenging macro backdrop. We were able to exceed our forecasts through the strength of our product portfolio, continued execution of our strategic priorities, and the tireless effort of our team members," commented Dave Rush, CEO of Builders FirstSource. The company’s stock has a 52-week high of $117.37 .
  • RSI Value: 77.11
  • BLDR Price Action: Shares of Builders FirstSource rose 1.6% to close at $116.46 on Wednesday.

Powell Industries, Inc. POWL

  • Powell Industries reported better-than-expected Q2 EPS and sales results. Brett A. Cope, Powell's Chairman and Chief Executive Officer, stated, “Powell delivered quarterly results that were among the best in its history, as our continued execution against our strategic initiatives combined with the cyclical recovery of our core markets drove new orders of $508 million – our highest ever quarterly total.” The company’s stock has a 52-week high of $52.81.
  • RSI Value: 74.86
  • POWL Price Action: Shares of Powell Industries rose 1.2% to close at $52.34 on Wednesday.

Harsco Corporation HSC

  • Harsco reported better-than-expected Q1 EPS and sales results and issued FY23 adjusted EPS guidance above analyst estimates. “Harsco delivered another quarter of strong operating and financial performance, as we continued to benefit from steady demand for our environmental solutions and focused execution by our teams across the company,” said Harsco Chairman and CEO Nick Grasberger. The company has a 52-week high of $9.70.
  • RSI Value: 76.70
  • HSC Price Action: Shares of Harsco jumped 1.2% to close at $9.42 on Wednesday.

Republic Services, Inc. RSG

  • Republic Services reported better-than-expected Q1 financial results. "We started the year strong with broad-based contribution across our business," said Jon Vander Ark, president and chief executive officer. The company’s 52-week high is $149.17.
  • RSI Value: 73.04
  • RSG Price Action: Shares of Republic Services gained 0.8% to close at $148.09 on Wednesday.

Rentokil Initial plc RTO

  • Rentokil raised its revenue guidance and cost savings projections. The company has a 52-week high of $40.44.
  • RSI Value: 74.52
  • RTO Price Action: Shares of Rentokil Initial rose 0.6% to settle at $40.36 on Wednesday.


Read More: Check Out 3 High-Yielding Dividend Stocks In Industrials Sector From Wall Street's Most Accurate Analysts

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