Top 5 Materials Stocks That May Crash This Month

The most overbought stocks in the materials 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.

Inter & Co, Inc. INTR

• Inter&Co said that FINRA approved Inter&CO Securities LLC to operate as a U.S. broker. The company’s stock has a 52-week high of $4.63 .
• RSI Value: 76.92
• INTR Price Action: Shares of Inter & Co fell 2.2% to close at $3.15 on Thursday.

Hawkins, Inc. HWKN

• Hawkins reported a year-over-year increase in fourth-quarter EPS and sales results. Patrick H. Hawkins, Chief Executive Officer and President said, “For the fourth year in a row we generated record operating income, net income, diluted EPS, and adjusted EBITDA. We achieved record sales of $935 million and adjusted EBITDA of $119 million in fiscal 2023.” The company’s stock has a 52-week high of $52.03.
• RSI Value: 73.28
• HWKN Price Action: Shares of Hawkins fell 0.5% to close at $51.44 on Thursday.

Universal Stainless & Alloy Products, Inc. USAP

• Universal Stainless posted a narrower-than-expected quarterly loss. Dennis Oates, Chairman, President and CEO commented, “I am pleased to report that our First Quarter results exceeded our expectations. Net sales were the highest since the second quarter of 2019.” The company has a 52-week high of $12.34.
• RSI Value: 74.94
• USAP Price Action: Shares of Universal Stainless & Alloy Products gained 0.3% to close at $12.15 on Thursday.

Martin Marietta Materials, Inc. MLM

• Martin Marietta Materials reported first-quarter FY23 revenue growth of 10% year-over-year to $1.35 billion, beating the consensus of $1.22 billion. Ward Nye, Chairman and CEO of Martin Marietta, stated, “Our year is off to a remarkable start with record first-quarter results by nearly every measure including continued world-class safety incidence rates.” The company’s 52-week high is $428.60.
• RSI Value: 74.45
• MLM Price Action: Shares of Martin Marietta Materials rose 0.5% to close at $425.40 on Thursday.

Vulcan Materials Company VMC

• Vulcan Materials reported better-than-expected first-quarter results. Tom Hill, Vulcan Materials' Chairman and Chief Executive Officer, said, “The powerful combination of our aggregates-led business and our commitment to execute on our strategic disciplines resulted in strong earnings growth in the first quarter.” The company has a 52-week high of $206.77.
• RSI Value: 74.29
• VMC Price Action: Shares of Vulcan Materials rose 0.6% to settle at $206.18 on Thursday.

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