Top 5 Industrials Stocks That May Plunge

The most overbought stocks in the industrials sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

Performant Financial Corporation PFMT

• Lake Street recently assumed Performant Finl with a Buy rating and announced a price target of $8. The company’s stock has a 52-week high of $3.97 .
• RSI Value: 86.98
• PFMT Price Action: Shares of Performant Financial gained 0.6% to settle at $3.63 on Tuesday and gained 3% in after-hours trading.

Willis Lease Finance Corporation WLFC

• Willis Lease Finance, during November, reported Q3 earnings of $0.89 per share. The company’s stock has a 52-week high of $61.01.
• RSI Value: 76.76
• WLFC Price Action: Shares of Willis Lease Finance gained 0.8% to close at $59.48 on Tuesday.

BGSF, Inc. BGSF

• BGSF, last month, said it has acquired Horn Solutions, Inc. The company has a 52-week high of $15.60.
• RSI Value: 74.30
• BGSF Price Action: Shares of BGSF gained 0.7% to $15.32 in after-hours trading.

Aerojet Rocketdyne Holdings, Inc. AJRD

• L3Harris Technologies recently agreed to acquire Aerojet Rocketdyne Holdings for $58 per share in an all-cash transaction valued at $4.7 billion, including debt. The company’s 52-week high is $56.19.
• RSI Value: 72.45
• AJRD Price Action: Shares of Aerojet Rocketdyne fell 0.1% to close at $55.87 on Tuesday and added 0.1% in after-hours trading.

ZTO Express (Cayman) Inc. ZTO

• ZTO Express, during November, reported better-than-expected Q3 EPS and sales results. The company has a 52-week high of $32.28.
• RSI Value: 71.46
• ZTO Price Action: Shares of ZTO Express gained 2.6% to settle at $27.57 on Tuesday and added 1.9% in today’s pre-market trading session.

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