Top 5 Materials Stocks That Should Keep You Up At Night

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.

Alto Ingredients, Inc. ALTO

• Alto Ingredients reported better-than-expected first-quarter sales. “In 2023, we continue to make good progress executing our transformative capital initiatives to drive our EBITDA expansion goals, and we are also pleased that current market improvements are positively impacting our business,” said Mike Kandris, CEO of Alto Ingredients. The company’s stock has a 52-week high of $5.30. .
• RSI Value: 74.21
• ALTO Price Action: Shares of Alto Ingredients gained 3.6% to close at $3.73 on Wednesday.

Friedman Industries, Incorporated FRD

• Friedman Industries reported a year-over-year increase in fourth-quarter EPS and revenues. “Strong fourth quarter results put an exclamation mark on a monumental fiscal year for Friedman,” said Michael J. Taylor, President and Chief Executive Officer. The company’s stock has a 52-week high of $13.38.
• RSI Value: 73.32
• FRD Price Action: Shares of Friedman Industries rose 0.5% to close at $12.89 on Wednesday.

Reliance Steel & Aluminum Co. RS

• Reliance Steel & Aluminum recently acquired all outstanding equity interests of Southern Steel Supply, LLC. The company has a 52-week high of $286.80.
• RSI Value: 75.81
• RS Price Action: Shares of Reliance Steel & Aluminum gained 0.4% to close at $283.32 on Wednesday.

Arconic Corporation ARNC

• Arconic recently entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management. The company’s 52-week high is $30.68.
• RSI Value: 70.57
• ARNC Price Action: Shares of Arconic gained 0.1% to close at $29.59 on Wednesday.

POSCO Holdings Inc. PKX

• POSCO shares jumped 33% over the past six months. The company has a 52-week high of $82.42.
• RSI Value: 70.69
• PKX Price Action: Shares of POSCO rose 6.4% to settle at $81.98 on Wednesday.

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