Top 5 Industrials Stocks That Are Ticking Portfolio Bombs

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.

Markforged Holding Corporation MKFG

• Markforged Holding posted upbeat quarterly results. "We have started the year strong with another record first quarter revenues and the largest pipeline in our company’s history. Demand for the Digital Forge grew across all geographies in Q1, as an increasing number of manufacturers are choosing our metal and composite solutions to solve mission-critical metal applications at the point of need," said Shai Terem, President and CEO of Markforged. The company’s stock has a 52-week high of $3.24. .
• RSI Value: 76.59
• MKFG Price Action: Shares of Markforged Holding jumped 40% to close at $1.61 on Monday.

Fathom Digital Manufacturing Corporation FATH

• Fathom Digital Mfg posted a narrower-than-expected quarterly loss. "Our results for the first quarter reflect the strong execution of our $19.5 million optimization plan, enabling Fathom to extend its history of Adjusted EBITDA and cash generation," said Ryan Martin, Fathom Chief Executive Officer. The company’s stock has a 52-week high of $4.79
• RSI Value: 71.60
• FATH Price Action: Shares of Fathom Digital Manufacturing jumped 10.1% to close at $0.4626 on Monday.

Dragonfly Energy Holdings Corp. DFLI

• Dragonfly Energy Holdings recently said it will be awarded a new U.S. patent based on a notice of allowance from the United States Patent and Trademark Office (USPTO) for U.S. Patent Application No. 29/858,079. The company has a 52-week high of $28.75.
• RSI Value: 76.35
• DFLI Price Action: Shares of Dragonfly Energy jumped 14.1% to close at $2.84 on Monday.

Toro Corp. TORO

• Toro said that on June 15, 2023, the company entered into an agreement with an unaffiliated third-party for the sale of the M/T Wonder Musica, a 2004-built Aframax/LR2 tanker. The company’s 52-week high is $26.00.
• RSI Value: 82.92
• TORO Price Action: Shares of Toro jumped 12.3% to close at $4.92 on Monday.

The L.S. Starrett Company SCX

• L S Starrett reported a decline in third-quarter EPS. “I am pleased with the overall strengthening of our balance sheet made in this quarter. Our teams have delivered significant improvements in cash flow and a reduction of debt despite headwinds in our international markets and broader global economic uncertainty,” said Douglas A. Starrett, President and Chief Executive Officer. The company has a 52-week high of $12.82.
• RSI Value: 73.52
• SCX Price Action: Shares of L.S. Starrett gained 11% to settle at $12.50 on Monday.

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