Carlisle Companies' 15-min chart hits RSI overbought, KDJ death cross confirmed.

Wednesday, Aug 13, 2025 2:50 pm ET2min read

Based on the 15-minute chart for Carlisle Companies, there are two technical indicators that have triggered a warning. Firstly, the Relative Strength Index (RSI) has reached an overbought level, which suggests that the stock price has risen too quickly and is no longer supported by fundamental analysis. Secondly, the KDJ (Stochastic Oscillator) has formed a death cross, indicating that the momentum of the stock price is shifting towards the downside and may continue to decline. This combination of indicators suggests that the stock price may be due for a correction.

Carlisle Companies Inc. (CSL) has triggered two significant technical indicators on its 15-minute chart, suggesting a potential downward shift in its stock price momentum. The Relative Strength Index (RSI) has reached an overbought level, and the KDJ (Stochastic Oscillator) has formed a death cross, both indicating that the stock price has risen too rapidly and may be unsupported by fundamental factors.

The RSI overbought condition indicates that the stock has been overvalued by some technical indicators, while the KDJ death cross signifies a bearish signal, where the K-line crosses below the D-line, suggesting a potential shift in the stock's momentum towards the downside [1]. These indicators imply that the stock price has risen too quickly and may be due for a correction.

Investors should be cautious, as Carlisle Companies' recent earnings performance and guidance may not align with the current stock price. The company reported its second-quarter 2025 earnings, with adjusted earnings per share of $6.27, which missed the Zacks Consensus Estimate of $6.67. Total revenues of $1,449.5 million also lagged the consensus estimate of $1,497 million, inching down 0.1% year over year. Organic revenues fell 3% year over year [1].

Despite the earnings miss, Carlisle Companies maintained its confidence in achieving low single-digit revenue growth at both the Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT) segments for the full year 2025. The company expects revenues to increase in the low single digits on a year-over-year basis, with adjusted EBITDA margin expected to contract approximately 150 basis points [1].

The company's recent acquisitions, such as Bonded Logic and MTL, contributed $39 million in revenue during the second quarter and are expected to enhance Carlisle's building envelope solutions and leverage potential for double-digit revenue CAGR in the insulation market. However, the company faced challenges in the residential markets, with a 2% decline in revenues and a 10% decrease in organic revenue due to softer residential end markets and roof coatings demand [1].

In conclusion, while the technical indicators suggest a potential downward trend in Carlisle Companies' stock price, investors should remain cautious given the mixed earnings performance and the company's conservative revenue guidance. The company's focus on strategic initiatives, such as reducing CWT's footprint and automating operations, may drive significant margin expansion and over $30 million in savings by 2026. However, the ongoing weakness in key customer segments and persistent headwinds in residential and commercial construction markets pose risks that investors should be aware of.

References:
[1] https://www.ainvest.com/news/carlisle-companies-stock-triggers-rsi-overbought-signal-kdj-death-cross-2508-52/

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