As of April 9, 2024, three stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
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, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
Superior Industries International, Inc. (NYSE:SUP)
- On March 7, Superior Industries Intl reported worse-than-expected fourth-quarter financial results. "Our teams demonstrated incredible resilience in 2023 as we navigated a challenging operating environment that significantly weighed on our financial results. Despite these near-term headwinds, including softness in the European aftermarket, the impact of the UAW strikes, declines in production amongst key customers in the second half of the year, and the impact of the strategic action initiated in Europe to transform our European business, we remained focused on optimizing our business," commented Majdi Abulaban, President and Chief Executive Officer of Superior. The company's stock gained around 47% over the past five days and has a 52-week high of $5.22 .
- RSI Value: 83.94
- SUP Price Action: Shares of Superior Industries gained 20% to close at $4.26 on Monday.
Sweetgreen, Inc. (NYSE:SG)
- On April 5, Oppenheimer maintained an Outperform rating on the stock and raised its price target from $17 to $34. The company's stock gained around 33% over the past month and has a 52-week high of $26.45.
- RSI Value: 70.55
- SG Price Action: Shares of Sweetgreen fell 1.1% to close at $25.13 on Monday.
SharkNinja, Inc. (NYSE:SN)
- On April 4, JP Morgan analyst Andrea Teixeira initiates coverage on SharkNinja with an Overweight rating and announced a price target of $70. The company's stock gained around 16% over the past month and has a 52-week high of $65.61.
- RSI Value: 77.67
- SN Price Action: Shares of SharkNinja gained 0.2% to close at $64.83 on Monday.
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