Top 3 Materials Stocks That May Implode This Month

As of July 19, 2024, three 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.

Sherwin-Williams Co SHW

• On July 17, Sherwin-Williams declared a dividend of 71.5 cents per common share. The company's stock gained around 8% over the past month and has a 52-week high of $348.37.
• RSI Value: 70.23                              
• SHW Price Action: Shares of Sherwin-Williams fell 0.1% to close at $325.46 on Thursday.

SunCoke Energy Inc SXC

• SunCoke Energy will release its second quarter financial results on Wednesday, July 31, before the opening bell. The company's stock gained around 13% over the past month and has a 52-week high of $11.48.
• RSI Value: 70.69
• SXC Price Action: Shares of SunCoke Energy gained 0.2% to close at $11.01 on Thursday.

James Hardie Industries plc JHX

• On May 20, James Hardie Industries reported worse-than-expected fourth-quarter financial results. James Hardie CEO Aaron Erter said, “Our team’s focus remains simple: working safely, partnering with our customers, managing decisively, and controlling what we can control. This focus has enabled us to deliver a strong fourth quarter and fiscal year for Adjusted Net Income.” The company's stock gained around 13% over the past month and has a 52-week high of $41.98.
• RSI Value: 70.37
• JHX Price Action: Shares of James Hardie gained 0.6% to close at $35.55 on Thursday.

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