Top 5 Industrials Stocks That Should Keep You Up At Night

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.

CompX International Inc. CIX

• Compx Intl reported a decline in second-quarter EPS. The company’s stock has a 52-week high of $27.82. .
• RSI Value: 73.46
• CIX Price Action: Shares of CompX International fell 14% to close at $21.60 on Wednesday.

Ultralife Corporation ULBI

• Ultralife reported better-than-expected second-quarter financial results. “Driven by surging demand from our government/defense and medical customers, we delivered a 33% year-over-year sales increase to $42.7 million for the second quarter. Leveraged by a sequential improvement in gross margin and disciplined spending, operating profit more than quadrupled from the year-earlier quarter to $3.7 million, the highest level since the third quarter of 2010,” said Mike Manna, President and Chief Executive Officer. The company’s stock has a 52-week high of $10.45.
• RSI Value: 83.51
• ULBI Price Action: Shares of Ultralife fell 8.8% to close at $9.51 on Wednesday.

Vertiv Holdings Co VRT

• Vertiv Hldgs posted upbeat second-quarter results. "These strong results reflect our relentless focus on operational execution, the strength of the ongoing rebound in the Americas and our continued progress in building a high-performance culture of excellence," said Giordano Albertazzi, Vertiv’s Chief Executive Officer. The company has a 52-week high of $36.69.
• RSI Value: 74.30
• VRT Price Action: Shares of Vertiv Holdings gained 2% to close at $35.68 on Wednesday.

Sterling Check Corp. STER

• Sterling Check posted better-than-expected quarterly earnings. Josh Peirez, Sterling CEO, said, “The second quarter of 2023 was an encouraging continuation of the first quarter with execution against our goals and solid results at or above our previous expectations. We made further progress on our key focus areas for 2023 and long-term strategy, including driving organic revenues, optimizing our cost profile, and integrating M&A.” The company’s 52-week high is $23.00.
• RSI Value: 71.45
• STER Price Action: Shares of Sterling Check fell 1.7% to close at $14.07 on Wednesday.

Jacobs Solutions Inc. J

• Jacobs Solutions reported better-than-expected third-quarter revenue results and issued FY23 guidance. Jacobs' President and CFO Kevin Berryman added, “We delivered strong third quarter results with accelerating revenue growth while continuing to expand operating profit margins.” The company has a 52-week high of $137.61.
• RSI Value: 70.74
• J Price Action: Shares of Jacobs Solutions fell 0.2% to settle at $136.14 on Wednesday.

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