Top 2 Materials Stocks That May Fall Off A Cliff This Quarter
Benzinga·04/30 12:25
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As of April 30, 2025, two stocks in the materials 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.
On April 25, Sensient Technologies reported better-than-expected first-quarter financial results and raised its FY25 EPS forecast. “As expected, Sensient got off to a strong start in the first quarter of 2025, building on the momentum from the previous year. Our results are driven by solid volume growth and sales wins, particularly in natural colors. The quarter’s achievements underscore our ability to adapt in dynamic market conditions, and I am pleased to reaffirm our 2025 guidance,” said Paul Manning, Sensient’s Chairman, President, and Chief Executive Officer. The company's stock jumped around 27% over the past month and has a 52-week high of $94.64.
RSI Value: 85.2
SXT Price Action: Shares of Sensient jumped 4.6% to close at $94.34 on Tuesday.
Edge Stock Ratings: 87.99 Momentum score with Value at 54.19.
On March 25, Compass Minerals announced cost structure reductions to align with current business needs. “Decisions such as these are never easy, but our board of directors and senior leadership team took a hard look at our cost structure and determined these actions were necessary to enable us to generate additional cash flow and accelerate our deleveraging,” said Edward C. Dowling Jr, president and CEO. The company's stock gained around 43% over the past month and has a 52-week high of $15.82.
RSI Value: 80.7
CMP Price Action: Shares of Compass Minerals gained 2% to close at $13.26 on Tuesday.
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