Top 5 Materials Stocks You May Want To Dump This Month

Author: Lisa Levin | August 10, 2023 08:17am

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.

Northern Technologies International Corporation (NASDAQ:NTIC)

• Northern Technologies International reported third-quarter FY23 sales of $20.97 million, a 10.6% growth year-on-year, missing the estimate of $20.60 million. "Our third quarter results also reflect the success of the countermeasures we've put in place against supply chain issues, significant raw material cost increases, and challenges across our European and Asian markets," said G. Patrick Lynch, President and CEO of NTIC. The company’s stock has a 52-week high of $15.00. .
• RSI Value: 72.60
• NTIC Price Action: Shares of Northern Technologies International fell 0.5% to close at $13.36 on Wednesday.

CF Industries Holdings, Inc. (NYSE:CF)

• CF Industries posted upbeat quarterly earnings. The company’s stock has a 52-week high of $119.60.
• RSI Value: 74.29
• CF Price Action: Shares of CF Industries gained 4.4% to close at $82.76 on Wednesday.

NewMarket Corporation (NYSE:NEU)

• NewMarket posted an increase in second-quarter EPS. The company has a 52-week high of $467.28.
• RSI Value: 79.00
• NEU Price Action: Shares of NewMarket fell 0.1% to close at $465.54 on Wednesday.

The Mosaic Company (NYSE:MOS)

• The Mosaic reported mixed second-quarter FY23 results. “The investments we've made in our business over the last decade are yielding results. Our Esterhazy potash complex is now the largest in the world and our Fertilizantes business in Brazil accounts for nearly a quarter of all fertilizer sales in one of the most dynamic ag markets in the world. Mosaic is well positioned to capitalize on the fertilizer market's recovery, which is well underway," said Joc O’Rourke, President and CEO. The company’s 52-week high is $63.16.
• RSI Value: 76.22
• MOS Price Action: Shares of Mosaic gained 1.6% to close at $42.41 on Wednesday.

Alpha Metallurgical Resources, Inc. (NYSE:AMR)

• Alpha Metallurgical reported better-than-expected second-quarter financial results. "Our team successfully navigated some challenges in the quarter, as we announced in late June," said Andy Eidson, Alpha's chief executive officer. The company has a 52-week high of $184.80.
• RSI Value: 73.06
• AMR Price Action: Shares of Alpha Metallurgical Resources rose 2.1% to settle at $183.73 on Wednesday.

 

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Posted In: AMR CF MOS NEU NTIC