Top 5 Materials Stocks That May Crash This Quarter

Author: Lisa Levin | May 01, 2023 07:32am

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.

Brown & Brown, Inc. (NYSE:BRO)

• Brown & Brown reported better-than-expected Q1 adjusted EPS and sales results. J. Powell Brown, president and chief executive officer of the Company, said, “The first quarter was an outstanding start to the year, and we delivered good profitable growth. We continue to leverage the collective capabilities of Brown & Brown to deliver innovative solutions for our customers.” The company’s stock has a 52-week high of $68.43 .
• RSI Value: 77.72
• BRO Price Action: Shares of Brown & Brown rose 0.6% to close at $64.39 on Friday.

Gold Fields Limited (NYSE:GFI)

• Gold Fields reported a rise in FY adjusted EPS. The company’s stock has a 52-week high of $15.88.
• RSI Value: 71.02
• GFI Price Action: Shares of Gold Fields rose 0.5% to close at $15.56 on Friday.

NewMarket Corporation (NYSE:NEU)

• NewMarket reported a year-over-year increase in Q1 EPS and sales. The company has a 52-week high of $400.91.
• RSI Value: 78.23
• NEU Price Action: Shares of NewMarket rose 1% to close at $399.60 on Friday.

Glatfelter Corporation (NYSE:GLT)

• Glatfelter named Boris Illetschko as Senior Vice President, Chief Operating Officer. The company’s 52-week high is $11.19.
• RSI Value: 77.18
• GLT Price Action: Shares of Glatfelter rose 2.5% to close at $4.52 on Friday.

Snow Lake Resources Ltd. (NASDAQ:LITM)

• Snow Lake recently regained compliance with NASDAQ continued listing requirements. The company has a 52-week high of $4.89.
• RSI Value: 71.55
• LITM Price Action: Shares of Snow Lake Resources rose 4.3% to settle at $2.41 on Friday.

Read More: Roblox And 3 Other Stocks Insiders Are Selling

Posted In: BRO GFI GLT LITM NEU