Top 5 Industrials Stocks That May Collapse In Q3

As of Sept. 25, 2024, five stocks in the industrials 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.

Nuscale Power Corp SMR

• On Sept. 13, CLSA initiated coverage on the stock with an Outperform rating and announced an $11 price target. The company's stock gained around 32% over the past five days and has a 52-week high of $16.91.
• RSI Value: 72.59                              
• SMR Price Action: Shares of Nuscale Power gained 9.7% to close at $11.95 on Tuesday.

Babcock & Wilcox Enterprises Inc BW

• On Sept. 5, Babcock & Wilcox secured a contract for waste-to-energy plant in Alberta, focusing on carbon capture. The company's stock gained around 27% over the past five days and has a 52-week high of $4.56.
• RSI Value: 77.56
• BW Price Action: Shares of Babcock & Wilcox Enterprises rose 8% to close at $1.63 on Tuesday.

LYFT Inc LYFT

• On Sept. 24, Raymond James analyst Josh Beck reinstated Lyft with a Market Perform rating. The company's stock gained around 13% over the past month and has a 52-week high of $20.82.
• RSI Value: 71.57
• LYFT Price Action: Shares of LYFT rose 4.8% to close at $13.33 on Tuesday.

ZIM Integrated Shipping Services Ltd ZIM

• On Aug. 19, ZIM Integrated Shipping Services reported better-than-expected second-quarter financial results and raised its FY24 guidance. The company's stock jumped around 22% over the past five days and has a 52-week high is $23.88.
• RSI Value: 74.31
• ZIM Price Action: Shares of ZIM Integrated gained 6% to close at $23.66 on Tuesday.

Caterpillar Inc. CAT

• On Sept. 24, Caterpillar moved higher following the company's announcement regarding its exhibit at the MINExpo 2024. Jim Umpleby, Chairman and CEO of Caterpillar, talked about the importance of their latest exhibit, which highlights the Cat Dynamic Energy Transfer system, the 798 AC mining truck, R1700 XE load-haul-dump loader, the Cat R1700 XE load-haul-dump, the Cat R2900 XE LHD and the PGS 1260 HD Energy Storage System.. The company's stock jumped around 9% over the past five days and has a 52-week high of $389.43.
• RSI Value: 78.92
• CAT Price Action: Shares of Caterpillar climbed 4% to close at $385.93 on Tuesday.

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