Top 4 Materials Stocks That May Fall Off A Cliff This Quarter

The most overbought stocks in the materials 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.

Inter & Co, Inc. INTR

  • Inter&Co said that FINRA approved Inter&CO Securities LLC to operate as a U.S. broker. The company’s stock has a 52-week high of $4.63 .
  • RSI Value: 71.61
  • INTR Price Action: Shares of Inter & Co rose 7.4% to close at $2.46 on Thursday.

Eagle Materials Inc. EXP

  • Eagle Materials reported fourth-quarter FY23 revenue growth of 13.8% year-over-year to $470.13 million, beating the consensus of $455.38 million. “Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction,” commented CEO Michael Haack. The company’s stock has a 52-week high of $169.19.
  • RSI Value: 73.21
  • EXP Price Action: Shares of Eagle Materials rose 1% to close at $166.56 on Thursday.

Universal Stainless & Alloy Products, Inc. USAP

  • Universal Stainless posted a narrower-than-expected quarterly loss. Dennis Oates, Chairman, President and CEO commented, “I am pleased to report that our First Quarter results exceeded our expectations. Net sales were the highest since the second quarter of 2019.” The company has a 52-week high of $11.55.
  • RSI Value: 82.48
  • USAP Price Action: Shares of Universal Stainless & Alloy Products rose 0.3% to close at $11.49 on Thursday.

Chase Corporation CCF

  • Chase posted a decline in quarterly EPS. Adam P. Chase, President and Chief Executive Officer of Chase Corporation, said, "Despite the historical second quarter unfavorable seasonal impact on revenue compared to our first fiscal quarter, the Company saw increased inorganic growth with our NuCera business and increased revenue from our Industrial Tapes segment’s specialty products and cable materials product lines compared to our prior year second fiscal quarter." The company’s 52-week high is $121.25.
  • RSI Value: 70.39
  • CCF Price Action: Shares of Chase fell 0.5% to close at $119.51 on Thursday.


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