As of July 31, 2024, three stocks in the industrials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

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

Rtx Corp (NYSE:RTX)

• On July 25, RTX reported second-quarter results and raised its 2024 outlook. RTX’s adjusted net sales increase 8% year-over-year to $19.791 billion, beating the consensus of $19.28 billion. Adjusted EPS grew 9% to $1.41, above the consensus of $1.30. The company's stock gained around 17% over the past month and has a 52-week high of $117.03.
• RSI Value: 83.10                              
• RTX Price Action: Shares of Rtx rose 2.1% to close at $116.88 on Tuesday.

Automatic Data Processing Inc (NASDAQ:ADP)

• On July 31, Automatic Data Processing posted better-than-expected quarterly earnings. The company's stock gained around 9% over the past month and has a 52-week high of $258.75.
• RSI Value: 74.71
• ADP Price Action: Shares of Automatic Data Processing rose 1% to close at $257.74 on Tuesday.

Lockheed Martin Corp (NYSE:LMT)

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