As of Oct. 28, 2024, three 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.
American Airlines Group Inc (NASDAQ:AAL)
- On Oct. 24, American Airlines posted better-than-expected third-quarter financial results. American Airlines now expects an adjusted EPS of $1.35 – $1.60 (prior $0.70 – $1.30) versus the consensus of $1.21. It expects a 2024 operating margin of 4.5% to 5.5%. The company's stock gained around 17% over the past month and has a 52-week high of $16.15.
- RSI Value: 77.05
- AAL Price Action: Shares of American Airlines gained 2.9% to close at $13.15 on Friday.
United Airlines Holdings Inc (NASDAQ:UAL)
- On Oct. 16, United Airlines reported better-than-expected fourth-quarter financial results and announced a $1.5 billion buyback program.. The company's stock gained around 31% over the past month and has a 52-week high of $76.08.
- RSI Value: 86.29
- UAL Price Action: Shares of United Airlines rose 0.2% to close at $74.64 on Friday.
BWX Technologies Inc (NYSE:BWXT)
- BWX Technologies will issue a press release detailing third quarter results on Monday, Nov. 4, after the closing bell. The company's stock gained around 13% over the past month and has a 52-week high of $128.00.
- RSI Value: 71.66
- BWXT Price Action: Shares of BWX Technologies gained 0.5% to close at $123.03 on Friday.
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