Top 5 Industrials Stocks That May Fall Off A Cliff This Quarter

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.

PGT Innovations, Inc. PGTI

• PGT Innovations posted downbeat quarterly earnings. "We finished our fiscal year with another strong quarter. Our fourth quarter financial results, with year-over-year net sales growth of 12 percent, showed recovery from impacts of Hurricane Ian and the ransomware incident, and was driven by continued operational improvement across our portfolio of brands," said Jeff Jackson, President and Chief Executive Officer. The company’s stock has a 52-week high of $25.78 .
• RSI Value: 81.78
• PGTI Price Action: Shares of PGT Innovations jumped 9.8% to close at $25.11 on Friday.

Innodata Inc. INOD

• Innodata posted a Q4 loss of $0.07 per share. Jack Abuhoff, CEO, said, “Q4 revenue was $19.4 million, a 5% increase over the prior quarter, which annualizes roughly to a 22% growth rate. In 2022 overall, we grew revenues 13%, despite the significant revenue decline from our large social media customer that has underwent significant internal disruption in the second half of the year.” The company’s stock has a 52-week high of $9.00.
• RSI Value: 73.11
• INOD Price Action: Shares of Innodata gained 6.5% to close at $8.54 on Friday.

Enovix Corporation ENVX

• Enovix reported mixed Q4 financial results. “We saw significant improvements in yield, output and customer qualification in the fourth quarter,” said Raj Talluri, President and Chief Executive Officer of Enovix. The company has a 52-week high of $26.30.
• RSI Value: 77.41
• ENVX Price Action: Shares of Enovix jumped 5% to close at $14.91 on Friday.

LegalZoom.com, Inc. LZ

• LegalZoom.com posted better-than-expected quarterly results. “I’m excited with the progress we made this quarter on the testing and rollout of our new product line-ups in both our LLC offering as well as LZ Tax. As we enter 2023, we are executing with increased velocity and are well-positioned to drive meaningful market share growth,” said Dan Wernikoff, LegalZoom’s Chief Executive Officer. The company’s 52-week high is $16.19.
• RSI Value: 71.48
• LZ Price Action: Shares of LegalZoom rose 5.5% to close at $9.38 on Friday.

Hyster-Yale Materials Handling, Inc. HY

• Hyster-Yale reported better-than-expected Q4 EPS and sales results.. The company has a 52-week high of $50.03.
• RSI Value: 72.45
• HY Price Action: Shares of Hyster-Yale Materials Handling rose 2.2% to settle at $49.89 on Friday.

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