The most overbought stocks in the consumer discretionary sector presents an opportunity to go short on these overvalued companies.
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.
Here's the latest list of major overbought players in this sector.
InterContinental Hotels Group PLC (NYSE:IHG)
- InterContinental Hotels, last month, opened its first Canadian avid hotels property in Vaughan, Ontario. The company's stock has a 52-week high of $71.71 .
- RSI Value: 86.44
- IHG Price Action: Shares of InterContinental Hotels Group gained 1.6% to settle at $71.67 on Friday and lost 0.2% in after-hours trading.
Potbelly Corporation (NASDAQ:PBPB)
- Potbelly recently reported preliminary Q4 sales results above estimates. The company's stock has a 52-week high of $7.55.
- RSI Value: 83.33
- PBPB Price Action: Shares of Potbelly gained 1.1% to close at $7.47 on Friday and lost 5% in after-hours trading.
Bluegreen Vacations Holding Corporation (NYSE:BVH)
- Bluegreen Vacations, last month, amended its previously announced tender offer to purchase up to 4.5 million shares to increase the offer price from $22.17 per share to $25.00 per share in cash. The company has a 52-week high of $32.96.
- RSI Value: 82.00
- BVH Price Action: Shares of Bluegreen Vacations rose 4.5% to close at $29.55 on Friday and lost 4.2% in after-hours trading.
Churchill Downs Incorporated (NASDAQ:CHDN)
- Susquehanna maintained Churchill Downs with a Positive and raised the price target from $250 to $280. The company's 52-week high is $249.33.
- RSI Value: 80.22
- CHDN Price Action: Shares of Churchill Downs rose 4% to close at $243.12 on Friday and added 0.8% in after-hours trading.
European Wax Center, Inc. (NASDAQ:EWCZ)
- European Wax Center recently issued FY22 revenue guidance above the high end of its previous outlook range. The company has a 52-week high of $33.31.
- RSI Value: 79.97
- EWCZ Price Action: Shares of European Wax Center rose 2.7% to settle at $17.50 on Friday.
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