Investors relying on momentum as a key factor in their trading decisions might want to pay close attention to five industrials stocks currently exhibiting overbought signals. The Relative Strength Index (RSI), a momentum indicator, gauges a stock’s strength during price increases versus price decreases. When compared to a stock’s price action, it can provide traders with a better understanding of potential short-term performance. An asset typically enters overbought territory when the RSI surpasses 70, according to Benzinga Pro.
Here’s a rundown of the five industrials stocks currently exhibiting overbought signals:
Nuscale Power Corp (SMR)
On September 13, CLSA initiated coverage of Nuscale Power with an Outperform rating and an $11 price target. The company’s stock has surged approximately 32% in the past five days, reaching a 52-week high of $16.91.
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RSI Value:
72.59*
SMR Price Action:
Nuscale Power shares climbed 9.7% on Tuesday, closing at $11.95.Babcock & Wilcox Enterprises Inc (BW)
Babcock & Wilcox secured a contract for a waste-to-energy plant in Alberta, focusing on carbon capture, on September 5. The company’s stock has risen around 27% in the past five days, reaching a 52-week high of $4.56.
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RSI Value:
77.56*
BW Price Action:
Babcock & Wilcox Enterprises shares increased 8% on Tuesday, closing at $1.63.LYFT Inc (LYFT)
Raymond James analyst Josh Beck reinstated Lyft with a Market Perform rating on September 24. The company’s stock has gained approximately 13% in the past month, reaching a 52-week high of $20.82.
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RSI Value:
71.57*
LYFT Price Action:
LYFT shares rose 4.8% on Tuesday, closing at $13.33.ZIM Integrated Shipping Services Ltd (ZIM)
ZIM Integrated Shipping Services reported better-than-expected second-quarter financial results and raised its FY24 guidance on August 19. The company’s stock has jumped approximately 22% in the past five days, reaching a 52-week high of $23.88.
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RSI Value:
74.31*
ZIM Price Action:
ZIM Integrated shares gained 6% on Tuesday, closing at $23.66.Caterpillar Inc. (CAT)
Caterpillar experienced a surge following the company’s announcement regarding its exhibit at the MINExpo 2024 on September 24. Jim Umpleby, Chairman and CEO of Caterpillar, emphasized the significance of their latest exhibit, which showcases the Cat Dynamic Energy Transfer system, the 798 AC mining truck, R1700 XE load-haul-dump loader, the Cat R1700 XE load-haul-dump, the Cat R2900 XE LHD, and the PGS 1260 HD Energy Storage System.
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RSI Value:
78.92*
CAT Price Action:
Caterpillar shares climbed 4% on Tuesday, closing at $385.93.While these stocks have demonstrated strong recent performance, their high RSI readings suggest potential for a short-term pullback. Investors should carefully consider these overbought signals and adjust their trading strategies accordingly.
