Top 5 Materials Stocks That May Crash This Quarter

Author: Lisa Levin | April 05, 2023 07:45am

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.

Coeur Mining, Inc. (NYSE:CDE)

• Coeur Mining posted a Q4 loss of $0.32 per share on sales of $785.60 million. "A stronger fourth quarter capped off an important year for Coeur in 2022 as we positioned the Company to deliver on a pivotal 2023 composed of several important catalysts, including the mid-year construction completion of the POA 11 expansion project at Rochester," said Mitchell J. Krebs, President and Chief Executive Officer. The company’s stock has a 52-week high of $5.40 .
• RSI Value: 70.38
• CDE Price Action: Shares of Coeur Mining rose 3.7% to close at $4.24 on Tuesday.

DRDGOLD Limited (NYSE:DRD)

• DRDGOLD’s shares jumped around 35% over the past month. The company’s stock has a 52-week high of $10.10.
• RSI Value: 71.10
• DRD Price Action: Shares of DRDGOLD rose 1.5% to close at $9.93 on Tuesday.

Diversey Holdings, Ltd. (NASDAQ:DSEY)

• Diversey Holdings posted downbeat quarterly earnings. The company has a 52-week high of $10.68.
• RSI Value: 71.39
• DSEY Price Action: Shares of Diversey Holdings gained 0.5% to close at 8.13 on Tuesday.

Newmont Corporation (NYSE:NEM)

• Citigroup maintained Newmont with a Buy and lowered the price target from $70 to $60. The company’s 52-week high is $86.37.
• RSI Value: 70.85
• NEM Price Action: Shares of Newmont rose 3.8% to close at $51.35 on Tuesday.

Danimer Scientific, Inc. (NYSE:DNMR)

• Danimer Scientific posted a narrower-than-expected quarterly loss. Stephen E. Croskrey, Chairman and Chief Executive Officer of Danimer, commented, "We are pleased to have achieved results consistent with our guidance for 2022, excited for the year ahead and focused on leveraging our global market-leadership position in PHA-based materials to drive value to our customers, partners and shareholders." The company has a 52-week high of $5.98.
• RSI Value: 81.71
• DNMR Price Action: Shares of Danimer Scientific rose 12.1% to settle at $4.36 on Tuesday.

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Posted In: CDE DNMR DRD DSEY NEM