Top 5 Materials Stocks That That May Collapse In Q1 2023

The most overbought stocks in the materials 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.

CRH plc CRH

• Redburn Partners recently upgraded the stock from Neutral to Buy. The company’s stock has a 52-week high of $52.03 .
• RSI Value: 81.56
• CRH Price Action: Shares of CRH jumped 9.2% to close at $51.82 on Thursday.

O-I Glass, Inc. OI

• O-I Glass reported better-than-expected Q4 results and issued Q1 and FY23 adjusted EPS guidance above estimates. “We are pleased with O-I’s full-year 2022 performance as earnings improved from the prior year reflecting strong net price realization, continued sales volume growth and favorable operating performance,” said Andres Lopez, O-I Glass CEO. The company’s stock has a 52-week high of $23.52.
• RSI Value: 80.50
• OI Price Action: Shares of O-I Glass gained 4.3% to close at $23.25 on Thursday.

The Mosaic Company MOS

• Mosaic reported better-than-expected Q4 sales results. The company has a 52-week high of $79.28.
• RSI Value: 81.73
• MOS Price Action: Shares of Mosaic gained 5.1% to close at $57.00 on Thursday.

Cleveland-Cliffs Inc. CLF

• Cleveland-Cliffs reported worse-than-expected Q4 sales results. Lourenco Goncalves, Cliffs' Chairman, President and CEO said, "In the fourth quarter of 2022 we generated healthy free cash flow of $262 million. We also achieved our targeted unit cost reduction of $80 per net ton, which helped us to partially offset the impact of lagged index pricing." The company’s 52-week high is $34.04.
• RSI Value: 71.95
• CLF Price Action: Shares of Cleveland-Cliffs gained 3.7% to close at $22.22 on Thursday.

Reliance Steel & Aluminum Co. RS

• Reliance Steel & Aluminum posted upbeat quarterly earnings. “We’re very pleased to have achieved record financial performance in 2022 across nearly every metric during a period of continued metal price volatility and broader economic uncertainty,” said Karla Lewis, President and Chief Executive Officer of Reliance. The company has a 52-week high of $260.19.
• RSI Value: 80.40
• RS Price Action: Shares of Reliance Steel & Aluminum gained 2.9% to settle at $260.17 on Thursday.

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