Top 5 Materials Stocks That May Collapse This Month

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.

Inter & Co, Inc. INTR

• Inter&CO Securities, a subsidiary of Inter&Co, has been granted approval by the Financial Industry Regulatory Authority to operate as an investment broker in the United States. The company’s stock has a 52-week high of $4.63 .
• RSI Value: 73.46
• INTR Price Action: Shares of Inter & Co fell 1.7% to close at $2.36 on Friday.

CEMEX, S.A.B. de C.V. CX

• Cemex reported better-than-expected first-quarter results. The company’s stock has a 52-week high of $6.85.
• RSI Value: 72.09
• CX Price Action: Shares of CEMEX fell 0.8% to close at $6.61 on Friday.

Diversey Holdings, Ltd. DSEY

• Net sales for the first quarter rose 5.5% versus prior year or 12.6% when adjusting for currency. The company has a 52-week high of $10.68.
• RSI Value: 70.74
• DSEY Price Action: Shares of Diversey Holdings gained 0.1% to close at $8.25 on Friday.

Vulcan Materials Company VMC

• Vulcan Materials reported better-than-expected first-quarter results. Tom Hill, Vulcan Materials' Chairman and Chief Executive Officer, said, "The powerful combination of our aggregates-led business and our commitment to execute on our strategic disciplines resulted in strong earnings growth in the first quarter." The company’s 52-week high is $199.10.
• RSI Value: 74.78
• VMC Price Action: Shares of Vulcan Materials gained 0.3% to close at $195.38 on Friday.

Martin Marietta Materials, Inc. MLM

• Martin Marietta Materials reported better-than-expected first-quarter results. Ward Nye, Chairman and CEO of Martin Marietta, said, “Our year is off to a remarkable start with record first-quarter results by nearly every measure including continued world-class safety incidence rates.” The company has a 52-week high of $404.87.
• RSI Value: 75.89
• MLM Price Action: Shares of Martin Marietta Materials rose 0.5% to settle at $402.57 on Friday.

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