Top 2 Materials Stocks That May Collapse In April

by | Apr 22, 2026 | General

As of April 22, 2026, 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.

Steel Dynamics Inc (NASDAQ:STLD)

  • On April 20, Steel Dynamics reported better-than-expected first-quarter sales results. “The teams executed well, delivering a strong first quarter 2026 performance across all of our platforms, with operating income increasing $228 million, or 73 percent,” said Mark D. Millett, Chairman and Chief Executive Officer. “The improvement in earnings was driven by record steel shipments combined with higher steel prices. Our three-year after-tax return-on-invested capital of 13 percent is a testament to our ongoing high-return capital allocation execution. We are growing, returning capital to shareholders, and maintaining strong returns with best-in-class performance compared to domestic manufacturers.” The company’s stock gained around 32% over the past month and has a 52-week high of $225.84.
  • RSI Value: 82.9                                
  • STLD Price Action: Shares of Steel Dynamics gained 5.2% to close at $220.21 on Tuesday.
  • Edge Stock Ratings: 89.80 Momentum score with Value at 68.81.

Nucor Corp (NYSE:NUE)

  • On April 16, Wells Fargo analyst Timna Tanners maintained Nucor with an Overweight rating and raised the price target from $197 to $213.. The company’s stock gained around 30% over the past month and has a 52-week high of $210.16.
  • RSI Value: 82.8
  • NUE Price Action: Shares of Nucor gained 2.9% to close at $208.06 on Tuesday.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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