Benzinga - by Lisa Levin, Benzinga Editor.
As of Nov. 20, 2023, four 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.
TransDigm Group Incorporated (NYSE: TDG)
- TransDigm Group reported better-than-expected fourth-quarter financial results. The company also entered into a definitive agreement to acquire the Electron Device Business of Communications & Power Industries, a portfolio company of TJC, L.P., for about $1.385 billion in cash. The company’s stock has a 52-week high of $1,013.08. .
- RSI Value: 71.02
- TDG Price Action: Shares of TransDigm rose 0.6% to close at $957.63 on Friday.
- Ingersoll Rand posted downbeat quarterly sales. "We remain committed to delivering differentiated, profitable growth and are again raising our full year guidance on total revenue growth, organic revenue growth, Adjusted EBITDA, and Adjusted EPS," said Vicente Reynal, chairman and chief executive officer. The company’s stock has a 52-week high of $70.65.
- RSI Value: 72.95
- IR Price Action: Shares of Ingersoll Rand rose 0.2% to close at $70.32 on Friday.
- The company posted weak quarterly earnings. “We are pleased with our third quarter results, which continue to demonstrate the resiliency of our business,” stated Olivier Ghesquiere, President and Chief Executive Officer. The company has a 52-week high of $49.60.
- RSI Value: 77.28
- TGH Price Action: Shares of Textainer Group rose 0.1% to close at $49.45 on Friday.
- AECOM reported better-than-expected fourth-quarter financial results and issued FY24 adjusted EPS guidance above estimates. "I am proud of our performance in fiscal 2023, including exceeding our initial and increased earnings guidance mid-points and enhancing our long-term visibility through a record design backlog and 20% pipeline growth," said Troy Rudd, AECOM’s chief executive officer." The company’s 52-week high is $92.16.
- RSI Value: 71.59
- ACM Price Action: Shares of AECOM slipped 0.01% to close at $86.98 on Friday.
Read More: Agilent Likely To Report Lower Q4 Earnings; Here's A Look At Recent Price Target Changes By The Most Accurate Analysts
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