Top 5 Materials Stocks That Are Ticking Portfolio Bombs

As of March 5, 2024, five stocks in the materials 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.

Nature Wood Group Limited (NASDAQ:NWGL)

• On March 4, Nature Wood Group said it expects to achieve a significant increase in revenue, reaching $45 million for the fiscal year 2024, compared to the recently preannounced revenue of $25.4 million for 2023. The company’s stock gained around 16% over the past five days and has a 52-week high of $21.97 .
• RSI Value: 77.38
• NWGL Price Action: Shares of Nature Wood Group gained 12.1% to close at $19.00 on Monday.

Harmony Gold Mining Company Limited (NYSE:HMY)

• On Jan. 25, Harmony Gold Mining announced that it remains on track to meet the higher end of its full-year production guidance. The company’s stock gained around 21% over the past five days and has a 52-week high of $6.78.
• RSI Value: 78.96
• HMY Price Action: Shares of Harmony Gold Mining gained 14.1% to close at $6.78 on Monday.

Danimer Scientific, Inc. (NYSE:DNMR)

• On Feb. 22, Danimer Scientific announced successful expansion of Rinnovo® Demonstration Plant Capacity. The company’s stock gained around 133% over the past month has a 52-week high of $4.59.
• RSI Value: 72.13
• DNMR Price Action: Shares of Danimer Scientific gained 11.8% to close at $1.42 on Monday.

Martin Marietta Materials, Inc. (NYSE:MLM)

• On Feb. 14, Martin Marietta Materials said fourth-quarter revenue grew 8.9% Y/Y to $1.608 billion, missing the consensus of $1.632 billion. Ward Nye, Chair and CEO said, “Looking at the year ahead, we expect aggregates demand for infrastructure, large-scale energy and domestic manufacturing projects will be strong, largely offsetting weaker residential demand and anticipated softening in light nonresidential activity. That said, as mortgage rates stabilize and affordability headwinds recede, we fully expect single-family residential construction to recover, as demand still far exceeds supply particularly in our key markets.” The company’s stock jumped around 9% over the past five days and has a 52-week high is $605.00.
• RSI Value: 85.53
• MLM Price Action: Shares of Martin Marietta Materials gained 2% to close at $601.90 on Monday.

RPM International In (NYSE:RPM)

• On Jan. 4, RPM International Inc (NYSE:RPM) reported second-quarter FY24 results and revised guidance. Sales remained flat Y/Y at $1.79 billion, missing the consensus of $1.84 billion. "Demand in DIY and specialty OEM markets remained weak; however, we overcame these challenges by successfully executing MAP 2025 initiatives to expand gross margins by 320 basis points and generate double-digit adjusted EBIT growth," said Frank C. Sullivan, RPM chairman and CEO. The company’s stock jumped around 12% over the past month and has a 52-week high of $117.61.
• RSI Value: 75.36
• RPM Price Action: Shares of RPM gained 1.5% to close at $116.47 on Monday.

 

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