Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Feb. 23, 2024, four 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.
Codere Online Luxembourg, S.A. (NASDAQ: CDRO)
- Codere Online said it will release financial results for the fourth quarter and full year 2023 on Feb. 29, 2024. The company’s stock gained around 56% over the past five days and has a 52-week high of $7.17 .
- RSI Value: 89.88
- CDRO Price Action: Shares of Codere Online Luxembourg gained 18.5% to close at $6.99 on Thursday.
- On Feb. 8, The company reported third-quarter adjusted earnings per share of $4.17, beating the street view of $3.54. For fiscal 2024, the company continues to expect revenues to increase approximately low-single digits to last year on a constant currency basis, now centering around 2% compared to 1% to 2% previously. The company’s stock gained around 34% over the past month and has a 52-week high of $187.87.
- RSI Value: 85.90
- RL Price Action: Shares of Ralph Lauren rose 1.7% to close at $187.13 on Thursday.
- On Feb. 21, Trip.Com reported better-than-expected fourth-quarter financial results. The company’s stock gained around 10% over the past five days and has a 52-week high of $45.10.
- RSI Value: 83.99
- TCOM Price Action: Shares of Trip.com Group gained 6.6% to close at $44.67 on Thursday.
- On Feb. 8, Tapestry reported better-than-expected second-quarter financial results and raised FY24 adjusted EPS guidance above estimates. In the fiscal year, Tapestry plans to return approximately $325 million to shareholders through dividend payments. This represents an anticipated annual dividend rate of $1.40 per share, an increase of 17% from the prior year. The company’s stock jumped around 27% over the past month and has a 52-week high is $47.92.
- RSI Value: 79.54
- TPR Price Action: Shares of Tapestry gained 1.8% to close at $47.80 on Thursday.
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