As of Nov. 26, 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.
Woodward, Inc. (NASDAQ:WWD)
- On Nov. 25, Woodward reported better-than-expected quarterly EPS and sales. "We delivered record sales in fiscal 2024 with Woodward revenue exceeding $3 billion for the first time. Robust end market demand along with contributions from operational excellence fueled significant sales growth and earnings expansion," said Chip Blankenship, Chairman and Chief Executive Officer. The company's stock gained around 5% over the past five days and has a 52-week high of $188.34.
- RSI Value: 81.90
- WWD Price Action: Shares of Woodward gained 1.8% to close at $179.29 on Monday.
Aris Water Solutions Inc (NYSE:ARIS)
- On Nov. 4, Aris Water Solutions reported better-than-expected third-quarter financial results. "Aris had an exceptional third quarter as we continued to grow our produced water volumes, increased our recycled water sales, and maintained our strong margins. As we anticipated, our capital investment to support these increased activity levels was primarily deployed in the first half of the year and our capital spending in the third quarter declined significantly. We continue to experience steady volume growth and increasing cash generation," said Amanda Brock, President and CEO of Aris. The company's stock gained around 79% over the past month and has a 52-week high of $27.64.
- RSI Value: 80.45
- ARIS Price Action: Shares of Aris Water Solutions gained 0.2% to close at $27.03 on Monday.
Mesa Air Group Inc (NASDAQ:MESA)
- On Oct. 16, Mesa Air Group reported a year-over-year decrease in third-quarter revenue results. The company's stock gained around 14% over the past five days and has a 52-week high of $1.89.
- RSI Value: 74.27
- MESA Price Action: Shares of Mesa Air gained 12.3% to close at $0.98 on Monday.
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