Warning Signs: Industrials Stocks on the Brink in Q1

The industrials sector sets off alarm bells, signaling caution to momentum-driven investors.

One key metric to watch, the Relative Strength Index (RSI), offers a glimpse into short-term stock performance based on price action.

Let’s explore the top five industrials players teetering on the edge in early 2024.

Grindrod Shipping Holdings Ltd. GRIN

• Grindrod Shipping reported better-than-expected results on Feb. 28, pushing its stock up by 11% in five days, hitting a 52-week high of $14.90.
• RSI Value: 72.96
• GRIN Price Action: Shares closed at $9.73, up 6.7% on Thursday.

NuScale Power Corporation SMR

• NuScale Power noted disappointing sales on March 14, sending the stock soaring by 55% in five days, hitting a 52-week high of $9.27.
• RSI Value: 84.89
• SMR Price Action: Shares closed at $7.24, up 2.3% on Thursday.

Copart, Inc. CPRT

• Copart announced leadership changes on March 11, propelling the stock by 13% in a month to a 52-week high of $56.96.
• RSI Value: 75.07
• CPRT Price Action: Shares closed at $56.42, up 0.3% on Thursday.

General Electric Company GE

• GE confirmed its financial outlook on March 7, sparking a 12% rise in a month, reaching a 52-week high of $175.81.
• RSI Value: 72.30
• GE Price Action: Shares closed at $166.75, down 2% on Wednesday.

Tennant Company TNC

• Tennant’s strategic acquisition on March 1 pushed the stock up by 10% in a month, with a 52-week high of $117.00.
• RSI Value: 70.55
• TNC Price Action: Shares closed at $112.07, down 0.6% on Thursday.