Top 3 Industrials Stocks That Are Ticking Portfolio Bombs

As of Nov. 12, 2024, three 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.

Redwire Corp RDW

• On Nov. 6, Redwire posted weaker-than-expected results for the third quarter. “Mergers and acquisitions are a core strength of Redwire and important to our growth strategy. During the third quarter, Redwire returned to our M&A roots by closing on the purchase of Hera Systems – our tenth acquisition. Hera Systems brings a highly competent team and two new platforms to Redwire’s spacecraft portfolio, expanding our ability to execute larger missions, particularly in our national security segment,” stated Peter Cannito, Chairman and Chief Executive Officer of Redwire. The company's stock gained around 34% over the past five days and has a 52-week high of $10.50.
• RSI Value: 81.89                              
• RDW Price Action: Shares of Redwire gained 15.1% to close at $10.38 on Monday.

American Superconductor Corporation AMSC

• On Oct. 30, American Superconductor posted better-than-expected quarterly earnings. “AMSC delivered fiscal second quarter net income of nearly $5 million and grew revenue by 60% when compared to the same period last year,” said Daniel P. McGahn, Chairman, President and CEO, AMSC. The company's stock gained around 35% over the past five days and has a 52-week high of $37.00.
• RSI Value: 80.60
• AMSC Price Action: Shares of American Superconductor gained 7.8% to close at $36.81 on Monday.

Graham Corp GHM

• On Nov. 8, Graham reported better-than-expected second-quarter financial results and raised its FY25 gross margin guidance. “Our team’s efforts to diversify and strengthen the business over the past few years are clearly yielding results, as shown by our record second-quarter performance,” commented Daniel J. Thoren, President and Chief Executive Officer. “Strong sales growth in our markets, along with exceptional execution throughout the business, have driven meaningful margin expansion. Our strategic emphasis on higher-margin opportunities and operational efficiencies has been a key driver of this success.” The company's stock gained around 46% over the past five days and has a 52-week high of $41.19.
• RSI Value: 85.02
• GHM Price Action: Shares of Graham gained 5% to close at $41.02 on Monday.

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