Top 2 Materials Stocks That May Keep You Up At Night This Quarter

As of May 7, 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.

Purecycle Technologies Inc (NASDAQ:PCT)

• On May 6, PureCycle Technologies reported better-than-expected first-quarter financial results. “Our commercial ramp remains on track for 2026. We achieved our internal sales plan in Q1, our fifth consecutive quarter of sequential revenue growth, and we’re seeing tangible momentum as our commercial pipeline converts into contracted demand,” said Dustin Olson, Chief Executive Officer of PureCycle Technologies. “Against a backdrop of improving macro tailwinds, we believe we’re entering a phase where execution and scale should increasingly differentiate our platform.” The company's stock gained around 40% over the past month and has a 52-week high of $17.37.
• RSI Value: 76.9                                
• PCT Price Action: Shares of Purecycle Technologies fell 0.4% to close at $7.62 on Wednesday.
• Edge Stock Ratings: 12.66 Momentum score.

Reliance Inc (NYSE:RS)

• On April 22, Reliance posted better-than-expected quarterly earnings. “Reliance is off to a strong start to 2026, capitalizing on favorable market fundamentals with first quarter volumes, pricing and earnings exceeding our expectations. Strong pricing and demand momentum continued to build throughout the quarter across our diversified product and end market portfolio,” said Karla Lewis, President and Chief Executive Officer of Reliance. The company's stock gained around 23% over the past month and has a 52-week high of $381.00.
• RSI Value: 79.5
• RS Price Action: Shares of Reliance gained 1.2% to close at $376.48 on Wednesday.

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