As of Sept. 25, 2026, three 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.

Hongli Group Inc (NASDAQ:HLP)

  • On Aug. 12, Hongli Group announced compliance with Nasdaq Minimum Bid Price Requirement. The company’s stock gained around 69% over the past month and has a 52-week high of $2.28.
  • RSI Value: 82.3                                
  • HLP Price Action: Shares of Hongli Group gained 8.1% to close at $2.20 on Thursday.

5E Advanced Materials Inc (NASDAQ:FEAM)

  • On Sept. 17, 5E Advanced Materials posted a narrower-than-expected quarterly loss. The company’s stock gained around 42% over the past five days and has a 52-week high of $7.50.
  • RSI Value: 72.8
  • FEAM Price Action: Shares of 5E Advanced Materials gained 5.1% to close at $2.78 on Thursday.

ZK International Group Co Ltd (NASDAQ:ZKIN)

  • On Sept. 14, ZK International Group Chairman announced the resignation of CFO Xiaofen Jin, while naming Ruihong Ma as chairman and CFO. The company’s stock gained around 58% over the past five days and has a 52-week high of $3.11.
  • RSI Value: 78.8                                                                                                    
  • ZKIN Price Action: Shares of ZK International rose 5.9% to close at $1.80 on Thursday.

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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