Top 3 Materials Stocks That May Crash This Quarter

Three materials sector stocks—OR Royalties (OR), Iamgold (IAG), and Equinox Gold (EQX)—are identified as technically overbought with high Relative Strength Index (RSI) values ranging from 78 to 85.8 as of September 10, 2025. While these companies have seen significant monthly gains of 13% to 50%, with OR Royalties and Equinox Gold reporting in-line or better-than-expected Q2 results, Iamgold posted weaker earnings. The elevated RSI levels, alongside recent price dips for OR and IAG despite their strong momentum, suggest these stocks may be technically overextended, posing a potential warning for momentum-focused investors.

Analysis

Three materials sector stocks—OR Royalties (OR), Iamgold (IAG), and Equinox Gold (EQX)—are exhibiting technically overbought conditions, with Relative Strength Index (RSI) values of 82.8, 78, and 85.8, respectively, all significantly above the 70-level threshold. This technical strain follows substantial one-month gains of approximately 13% for OR, 33% for IAG, and 50% for EQX. The fundamental pictures supporting these rallies are varied: Equinox Gold reported better-than-expected Q2 results and strong operational momentum, while OR Royalties posted in-line earnings and reaffirmed its annual guidance, noting that outperformance in one asset is offsetting weakness elsewhere. In contrast, Iamgold reported weaker-than-expected quarterly earnings. Recent price action shows a potential divergence, as OR and IAG shares fell 1.1% and 0.6% respectively, while EQX continued to climb 1.2%, suggesting the technical warnings may be starting to materialize for the former two. The divergence is further highlighted by OR Royalties' specific metrics, which show a very high Momentum score of 93.21 but a low Value score of 8.13, quantitatively signaling a potential disconnect for value-conscious investors.

Key Decisions for Investors

• Given the elevated RSI values across all three equities, investors should exercise caution with new long positions as the risk of a short-term technical correction has increased significantly following sharp price appreciation.
• It is prudent to differentiate treatment based on fundamentals; Equinox Gold's better-than-expected results and strong operational outlook may provide more resilient support for its valuation compared to Iamgold's weaker earnings report.
• Investors already holding positions, particularly in OR Royalties and Iamgold which have shown initial signs of price reversal, might consider trimming exposure or setting tighter stop-loss orders to protect recent profits.
• For OR Royalties specifically, the stark contrast between its high Momentum score (93.21) and low Value score (8.13) warrants a closer look at valuation, suggesting the stock may be particularly vulnerable to a correction if momentum stalls.