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Two Industrial Stocks Trading in the Overbought Zone

MarketDash Editorial Team
20 days ago
ZIM Integrated Shipping and Babcock & Wilcox are showing RSI readings above 70, suggesting these momentum plays might be due for a breather after recent rallies.

When stocks rally hard and fast, it's worth asking whether they've gone too far, too quickly. As of November 18, 2025, two industrial sector names are flashing potential warning signs for traders who pay attention to momentum indicators.

The Relative Strength Index (RSI) measures a stock's strength on up days versus down days, giving traders insight into short-term momentum. When the RSI climbs above 70, it typically signals an overbought condition—meaning the stock might be due for a breather after a strong run. Here's a look at two industrial stocks currently in that territory.

ZIM Integrated Shipping Services Ltd

ZIM Integrated Shipping Services Ltd (ZIM) is riding a significant wave heading into earnings. The shipping company will release third quarter 2025 results on Thursday, November 20, and shares have already climbed roughly 27% over the past month. The stock currently sports a 52-week high of $30.15.

RSI Value: 73.1

That RSI reading above 73 puts ZIM firmly in overbought territory. On Monday, shares jumped another 6.2% to close at $17.01, suggesting the momentum hasn't slowed down yet.

For context, ZIM has an Edge Stock Ratings momentum score of 15.23, though its value score sits at an impressive 99.14.

Babcock & Wilcox Enterprises Inc

The real momentum story here belongs to Babcock & Wilcox Enterprises Inc (BW), which has absolutely torn higher over the past month—up approximately 78%. That rally came on the heels of better-than-expected third-quarter earnings reported on November 4.

"For the third quarter, we delivered strong operating results while displaying continued core business momentum and significant margin improvement," said Kenneth Young, B&W Chairman and Chief Executive Officer. "Adjusted EBITDA and Operating Income significantly outperformed Company and consensus expectations this quarter. Our growing backlog, which was 56% higher compared to the same period last year, benefited from increasing demand across Thermal projects, upgrades and construction, as baseload generation needs in North America continue to accelerate."

The stock has reached a 52-week high of $7.77 during this rally.

RSI Value: 70.1

With an RSI just above 70, Babcock & Wilcox is technically overbought but right at the threshold. Shares pulled back 3.9% on Monday to close at $6.41, which could be an early sign that the momentum is starting to cool.

It's worth noting that overbought doesn't automatically mean a stock will reverse course. Strong fundamental drivers can keep momentum going even when technical indicators suggest caution. But for traders focused on timing and momentum, these RSI readings suggest both stocks may be approaching a potential consolidation phase after their impressive runs.

Back to News

Two Industrial Stocks Trading in the Overbought Zone

MarketDash Editorial Team
20 days ago
ZIM Integrated Shipping and Babcock & Wilcox are showing RSI readings above 70, suggesting these momentum plays might be due for a breather after recent rallies.

When stocks rally hard and fast, it's worth asking whether they've gone too far, too quickly. As of November 18, 2025, two industrial sector names are flashing potential warning signs for traders who pay attention to momentum indicators.

The Relative Strength Index (RSI) measures a stock's strength on up days versus down days, giving traders insight into short-term momentum. When the RSI climbs above 70, it typically signals an overbought condition—meaning the stock might be due for a breather after a strong run. Here's a look at two industrial stocks currently in that territory.

ZIM Integrated Shipping Services Ltd

ZIM Integrated Shipping Services Ltd (ZIM) is riding a significant wave heading into earnings. The shipping company will release third quarter 2025 results on Thursday, November 20, and shares have already climbed roughly 27% over the past month. The stock currently sports a 52-week high of $30.15.

RSI Value: 73.1

That RSI reading above 73 puts ZIM firmly in overbought territory. On Monday, shares jumped another 6.2% to close at $17.01, suggesting the momentum hasn't slowed down yet.

For context, ZIM has an Edge Stock Ratings momentum score of 15.23, though its value score sits at an impressive 99.14.

Babcock & Wilcox Enterprises Inc

The real momentum story here belongs to Babcock & Wilcox Enterprises Inc (BW), which has absolutely torn higher over the past month—up approximately 78%. That rally came on the heels of better-than-expected third-quarter earnings reported on November 4.

"For the third quarter, we delivered strong operating results while displaying continued core business momentum and significant margin improvement," said Kenneth Young, B&W Chairman and Chief Executive Officer. "Adjusted EBITDA and Operating Income significantly outperformed Company and consensus expectations this quarter. Our growing backlog, which was 56% higher compared to the same period last year, benefited from increasing demand across Thermal projects, upgrades and construction, as baseload generation needs in North America continue to accelerate."

The stock has reached a 52-week high of $7.77 during this rally.

RSI Value: 70.1

With an RSI just above 70, Babcock & Wilcox is technically overbought but right at the threshold. Shares pulled back 3.9% on Monday to close at $6.41, which could be an early sign that the momentum is starting to cool.

It's worth noting that overbought doesn't automatically mean a stock will reverse course. Strong fundamental drivers can keep momentum going even when technical indicators suggest caution. But for traders focused on timing and momentum, these RSI readings suggest both stocks may be approaching a potential consolidation phase after their impressive runs.