Top 3 Materials Stocks That May Implode This Month

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.

Inter & Co, Inc. (NASDAQ: INTR)

• Inter & Co posted in-line earnings for the second quarter. João Vitor Menin, CEO of Inter&Co said, “This quarter marks an inflection point in our company’s history – it was a quarter of records, with significant achievements across many fronts. We have all cylinders firing in the right direction, showcasing Inter at its best.” The company’s stock has a 52-week high of $4.63. .
• RSI Value: 70.14
• INTR Price Action: Shares of Inter & Co gained 3% to close at $4.46 on Friday.

AptarGroup, Inc. (NYSE: ATR)

• AptarGroup posted upbeat earnings for the second quarter. Stephan B. Tanda, Aptar President and CEO, said, "Aptar delivered strong, double-digit EPS growth in the second quarter, highlighted by increased core sales in our pharma proprietary dosing and dispensing systems and the success of our beauty dispensing solutions in fragrance." The company’s stock has a 52-week high of $127.68.
• RSI Value: 77.24
• ATR Price Action: Shares of AptarGroup gained 1.9% to close at $127.54 on Friday.

Hawkins, Inc. (NASDAQ: HWKN)

• Hawkins reported better-than-expected first-quarter earnings. Patrick H. Hawkins, Chief Executive Officer and President said, “We are pleased with our strong year-over-year performance in the first quarter, with our bottom line growing 19%. Our Water Treatment group lead the way with 19% revenue growth and operating income growth of nearly 70%.” The company has a 52-week high of $58.82.
• RSI Value: 75.55
• HWKN Price Action: Shares of Hawkins gained 1.3% to close at $58.40 on Friday.

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