Top 2 Industrials Stocks That May Fall Off A Cliff In January

As we kick off the new year, investors are keeping a close eye on the industrials sector, which has been a significant driver of market performance in recent months. However, not all stocks in this sector are poised for success in January. In this article, we'll examine two industrials stocks that may face challenges in the coming weeks and could potentially fall off a cliff.



1. Boeing Co (BA) - The aerospace giant has been on a rollercoaster ride in recent years, with its stock price reflecting the ups and downs of the company's fortunes. As we head into January, there are several factors that could contribute to a significant downturn in Boeing's stock price.

- Earnings Misses: Boeing is expected to release its earnings for the fourth quarter of 2024 on Tuesday, January 28. If the company misses analysts' estimates for revenue or EPS, it could lead to a sell-off in its stock.
- Market Overbought Conditions: The RSI (Relative Strength Index) for Boeing is 73.3, indicating that the stock is overbought. This could lead to a correction or a pullback in the market, causing stocks to decline.
- Geopolitical Risks: The ongoing increase in hostilities in the Middle East could lead to volatility in commodity prices, including crude oil. If the situation escalates, it could negatively impact stocks, especially those in the energy sector.



2. Alaska Air Group Inc (ALK) - The airline industry has been volatile in recent years, and Alaska Air Group is no exception. While the company has received a positive analyst upgrade, there are still potential catalysts that could trigger a significant downturn in its stock price in January.

- Earnings Misses: Although not explicitly mentioned in the provided information, Alaska Air may have an upcoming earnings release that could contribute to investor interest and the stock's recent surge. If the company misses analysts' estimates for revenue or EPS, it could lead to a sell-off in its stock.
- Market Overbought Conditions: The RSI (Relative Strength Index) for Alaska Air is 76.8, indicating that the stock is overbought. This could lead to a correction or a pullback in the market, causing stocks to decline.
- Weather-related Production Shutdowns: The frigid weather moving into the United States from Canada could shut down production for nat gas operators and other energy companies. This could lead to a decline in energy stocks, as well as stocks in other sectors that rely on energy for their operations.



In conclusion, while the industrials sector has been a strong performer in recent months, there are still stocks that may face challenges in January. Boeing and Alaska Air Group are two examples of industrials stocks that could potentially fall off a cliff in the coming weeks. Investors should be aware of the potential catalysts that could trigger a significant downturn in these stocks and consider the risks associated with holding them in their portfolios. As always, it's essential to conduct thorough research and consult with a financial advisor before making any investment decisions.