Several Materials Stocks Show Elevated Momentum Ahead of Q3 Earnings

Several materials stocks are entering third-quarter earnings season with elevated Relative Strength Index (RSI) readings, putting recent price momentum in focus as investors assess company results and guidance.

The 10 tickers on the watchlist are NUE, APD, PKG, SMG, RS, HWKN, IFF, LYB, DOW and WS. The readings reflect strong recent price momentum, with several shares in or near overbought territory after recent gains.

An elevated RSI does not guarantee that a share will reverse. Results or guidance that disappoint investors could prompt profit-taking, while investors watch whether recent momentum holds as quarterly reports arrive.