As of May 20, 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.
SharkNinja, Inc. (NYSE:SN)
- On May 9, SharkNinja reported better-than-expected first-quarter financial results and raised its FY24 guidance. "SharkNinja is off to a strong start in 2024 with outstanding business performance and balanced growth in the first quarter, while driving continued momentum into the second quarter," said Mark Barrocas, Chief Executive Officer. The company's stock gained around 20% over the past month and has a 52-week high of $74.77.
- RSI Value: 82.70
- SN Price Action: Shares of SharkNinja rose 1.7% to close at $74.46 on Friday.
Tractor Supply Company (NASDAQ:TSCO)
- On May 16, Expion360 announced a new online retail partnership with Tractor Supply Company. The company's stock gained around 13% over the past month and has a 52-week high of $286.15.
- RSI Value: 74.14
- TSCO Price Action: Shares of Tractor Supply rose 3.4% to close at $285.67 on Friday.
Brinker International, Inc. (NYSE:EAT)
- On April 30, Brinker International reported third-quarter FY24 total revenue growth of 3.4% year-on-year to $1.120 billion, which was in line with the analyst consensus estimate. Brinker raised its FY24 adjusted EPS outlook from $3.45-$3.70 to $3.80-$4.00 against the estimate of $3.69. The company's stock gained around 35% over the past month and has a 52-week high of $63.80.
- RSI Value: 80.29
- EAT Price Action: Shares of Brinker International fell 0.3% to close at $62.56 on Friday.
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