Benzinga - by Lisa Levin, Benzinga Editor.
As of Nov. 29, 2023, five 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.
Newegg Commerce, Inc. (NASDAQ: NEGG)
- Newegg's board recently authorized a $10.0 million share repurchase program lasting two years. The company’s stock has a 52-week high of $3.09. .
- RSI Value: 72.64
- NEGG Price Action: Shares of Newegg Commerce rose 15.2% to close at $1.14 on Tuesday.
- The company posted upbeat third-quarter earnings. “We delivered stronger sequential results that are consistent with our back-end weighted full-year outlook, while again producing positive free cash flow, further reducing debt, and strategically investing to capitalize on future demand,” said Michael Benstock, Chief Executive Officer. The company’s stock has a 52-week high of $12.58.
- RSI Value: 71.68
- SGC Price Action: Shares of Superior Group of Companies fell 3.9% to close at $11.34 on Tuesday.
- TAL Education posted better-than-expected quarterly results. The company has a 52-week high of $11.77.
- RSI Value: 70.93
- TAL Price Action: Shares of TAL Education rose 4.6% to close at $11.40 on Tuesday.
- Texas Roadhouse reported weaker-than-expected third-quarter earnings. Jerry Morgan, Chief Executive Officer of Texas Roadhouse, Inc. commented, “We are pleased to report another quarter of double-digit sales growth, highlighted by increased guest counts, which has continued through the October period. Our operators are clearly providing a legendary experience that is resonating with our guests.” The company’s 52-week high is $118.16.
- RSI Value: 74.07
- TXRH Price Action: Shares of Texas Roadhouse fell 0.7% to close at $112.05 on Tuesday.
- Rover reported better-than-expected third-quarter financial results, raised FY23 revenue guidance above estimates and announced an extension of its share repurchase program. “We had an outstanding third quarter with 30% revenue growth, net income of $10.5 million and Adjusted EBITDA of $17.5 million,” said Rover co-founder and CEO, Aaron Easterly. The company has a 52-week high of $8.69.
- RSI Value: 71.01
- ROVR Price Action: Shares of Rover Group gained 0.8% to close at $8.50 on Tuesday.
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