Top 3 Industrials Stocks That May Crash This Month

As of July 31, 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.

Rtx Corp RTX

• On July 25, RTX reported second-quarter results and raised its 2024 outlook. RTX’s adjusted net sales increase 8% year-over-year to $19.791 billion, beating the consensus of $19.28 billion. Adjusted EPS grew 9% to $1.41, above the consensus of $1.30. The company's stock gained around 17% over the past month and has a 52-week high of $117.03.
• RSI Value: 83.10                              
• RTX Price Action: Shares of Rtx rose 2.1% to close at $116.88 on Tuesday.

Automatic Data Processing Inc ADP

• On July 31, Automatic Data Processing posted better-than-expected quarterly earnings. The company's stock gained around 9% over the past month and has a 52-week high of $258.75.
• RSI Value: 74.71
• ADP Price Action: Shares of Automatic Data Processing rose 1% to close at $257.74 on Tuesday.

Lockheed Martin Corp LMT

• On July 23, Lockheed Martin reported better-than-expected second-quarter financial results. "We continue to demonstrate the impact of our 21st Century Security® strategy by harnessing the latest digital technologies to continuously improve mission effectiveness, strengthening and scaling the defense production system, and expanding industrial cooperation among our allies and partners. Consequently, demand for our defense technology solutions remains robust, with a backlog of nearly $160 billion, greater than two times annual revenue," commented Lockheed Martin Chairman, President, and CEO Jim Taiclet. The company's stock gained around 15% over the past month and has a 52-week high of $538.46.
• RSI Value: 90.98
• LMT Price Action: Shares of Lockheed Martin gained 1.9% to close at $537.66 on Tuesday.

Read Next:

• Nasdaq Tumbles As Microsoft, Nvidia And Other Tech Stocks Decline: Greed Index Moves To ‘Fear’ Zone