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Warning Signs for Industrials: Stocks on a High-Octane Ride

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In the industrials sector, investors may want to take heed – five stocks are currently revving in the fast lane, but could be headed towards a sharp descent.

The Relative Strength Index (RSI) is the pulse of a stock’s momentum – a litmus test for its vigor during both upswings and downturns. By aligning RSI with market performance, we can unveil clues about a stock’s near future. When RSI surpasses 70, it’s usually a sign of being overbought, as per Benzinga Pro.

Let’s delve into the high-flying names in this sector that may be gearing up for a bumpy ride.

Nikola Corporation NKLA

  • Recently, on March 27, Nikola announced a partnership enabling the launch of the first commercial hydrogen fueling station in Alberta, Canada, with trucker rest stop Blackjacks Roadhouse among the participants. The stock shot up approximately 58% over the last five days and hit a dazzling 52-week high of $3.71.
  • RSI Value: 77.54
  • NKLA Price Action: Shares of Nikola revved up by 14.4% to close at $1.04 on the trading day.

Graham Corporation GHM

  • In early February, Graham Corporation unveiled quarterly results that surpassed expectations. Riding high on this news, the stock surged around 15% in the past month, reaching an impressive all-time 52-week high of $27.60.
  • RSI Value: 78.52
  • GHM Price Action: Graham’s shares gained 1.3% to close at $27.28 recently.

BrightView Holdings, Inc. BV

  • At the start of the year, BrightView reported underwhelming quarterly results. However, this didn’t stop the stock from skyrocketing roughly 37% over the last month and touching a 52-week high of $11.92.
  • RSI Value: 83.40
  • BV Price Action: BrightView Holdings advanced by 4.4% to close at $11.90 in the latest trading session.

Thermon Group Holdings, Inc. THR

  • Mid-March witnessed Thermon Group greenlighting the repurchase of up to $50 million of its own shares through 2027. Following this move, the stock surged by around 20% in the past month, hitting a 52-week peak of $34.07.
  • RSI Value: 70.57
  • THR Price Action: Shares of Thermon Group rose by 2.7% to end the day at $32.72.

Air Lease Corporation AL

  • Closing in late March, Air Lease declared the successful offering of €600 million in senior unsecured medium-term notes. This announcement propelled the stock up by approximately 28% in the last month, reaching an impressive 52-week high of $51.77.
  • RSI Value: 84.53
  • AL Price Action: Air Lease saw a 1.3% increase to close at $51.44 in the most recent trading day.

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