Top 5 Industrials Stocks That Could Sink Your Portfolio In Q2

Benzinga · May 28 19:31

As of May 28, 2024, five 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.

FREYR Battery, Inc. (NYSE:FREY)

On May 22, FREYR Battery announced that it completed its first production trial of unit cells using the full capabilities of the Casting and Unit Cell Assembly at the Customer Qualification Plant. The company's stock gained around 26% over the past five days and has a 52-week high of $10.10.
RSI Value: 70.13
FREY Price Action: Shares of FREYR Battery rose 17.3% to close at $2.58 on Friday.

Redwire Corporation (NYSE:RDW)

On May 8, Redwire reported better-than-expected first-quarter sales. "During the first quarter we executed on our 2024 growth strategy as planned, resulting in both record revenue of $87.8 million and positive Adjusted EBITDA," stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. "We've started the year strong with many large, transformative opportunities in the pipeline." The company's stock gained around 32% over the past month and has a 52-week high of $5.11.
RSI Value: 70.07
RDW Price Action: Shares of Redwire rose 5.2% to close at $5.03 on Friday.

Bloom Energy Corporation (NYSE:BE)

On May 24, Bloom Energy priced its upsized $350 million 3.00% green convertible senior notes offering due 2029. The company's stock gained around 30% over the past five days and has a 52-week high of $18.76.
RSI Value: 71.98
BE Price Action: Shares of Bloom Energy gained 3.6% to close at $16.29 on Friday.

Construction Partners, Inc. (NASDAQ:ROAD)

On May 10, Construction Partners posted a narrower-than-expected quarterly loss. Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "We are pleased to report a strong second quarter in the slowest winter quarter of our seasonal business, achieving year-over-year growth in revenue, gross profit and gross profit margin, Adjusted EBITDA and Adjusted EBITDA margin." The company's stock jumped around 11% over the past five days and has a 52-week high is $61.45.
RSI Value: 72.14
ROAD Price Action: Shares of Construction Partners rose 5% to close at $61.44 on Friday.

Danaos Corporation (NYSE:DAC)

Danaos is expected to release its results for the first quarter ended March 31, 2024, before the opening bell on Tuesday, May 28. The company's stock jumped around 18% over the past month and has a 52-week high of $90.95.
RSI Value: 91.13
DAC Price Action: Shares of Danaos rose 2.7% to close at $90.59 on Friday.

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