Top 4 Materials Stocks That Could Sink Your Portfolio In June

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.

Martin Marietta Materials, Inc. MLM

• Martin Marietta Materials reported better-than-expected first-quarter results. The company’s stock has a 52-week high of $445.69. .
• RSI Value: 77.86
• MLM Price Action: Shares of Martin Marietta Materials rose 0.1% to close at $442.78 on Monday.

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’s stock has a 52-week high of $215.89.
• RSI Value: 79.59
• VMC Price Action: Shares of Vulcan Materials rose 0.2% to close at $214.77 on Monday.

Eagle Materials Inc. EXP

• Eagle Materials reported fourth-quarter FY23 revenue growth of 13.8% year-over-year to $470.13 million, beating the consensus of $455.38 million. “Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favorable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction,” commented CEO Michael Haack. The company has a 52-week high of $176.31.
• RSI Value: 70.05
• EXP Price Action: Shares of Eagle Materials rose 0.3% to close at $174.82 on Monday.

Knife River Corporation KNF

• DA Davidson initiated coverage on Knife River Holding with a Buy rating and announced a price target of $48. The company’s 52-week high is $49.19.
• RSI Value: 71.05
• KNF Price Action: Shares of Knife River rose 2.8% to close at $46.86 on Monday.

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