Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of March 8, 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.
Carvana Co. (NYSE: CVNA)
- On Feb. 28, the company debuted its newest Car Vending Machine in San Diego, California. The company’s stock gained around 52% over the past month and has a 52-week high of $84.59 .
- RSI Value: 71.37
- CVNA Price Action: Shares of Carvana gained 2.1% to close at $79.47 on Thursday.
- On Feb. 29, Codere Online reported financial results for the fourth quarter and full year 2023. Aviv Sher, CEO of Codere Online, stated, "In Q4 2023 we delivered an impressive 33% growth in net gaming revenue to €50 million, our highest ever quarterly figure, despite a tough comp with the World Cup in the prior year period. Our strategic focus on Mexico and Spain, where we are seeing a strong return on marketing investment, has proven successful, with significant increases in both our active customer base and spend per customer. Casino continued to exceed our expectations with a second consecutive quarter contributing 58% of total net gaming revenue in the period." The company’s stock gained around 57% over the past month and has a 52-week high of $7.51.
- RSI Value: 74.28
- CDRO Price Action: Shares of Codere Online Luxembourg fell 0.6% to close at $6.91 on Thursday.
- On Feb. 29, B of A Securities analyst John Murphy maintained CarMax with an Underperform and raised the price target from $44 to $50. The company’s stock gained around 10% over the past month has a 52-week high of $87.50.
- RSI Value: 70.98
- KMX Price Action: Shares of CarMax gained 0.1% to close at $80.66 on Thursday.
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