Top 5 Consumer Stocks That Should Keep You Up At Night
Portfolio Pulse from Lisa Levin
The article lists five consumer stocks that are considered overbought, indicating they may be overvalued. The stocks are RH (NYSE:RH), Newegg Commerce, Inc. (NASDAQ:NEGG), Modine Manufacturing Company (NYSE:MOD), Landsea Homes Corporation (NASDAQ:LSEA), and Ermenegildo Zegna N.V. (NYSE:ZGN). The Relative Strength Index (RSI) values for these stocks are above 70, suggesting they may be due for a price correction.

July 18, 2023 | 11:30 am
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NEGATIVE IMPACT
Barclays recently maintained Landsea Homes with an Equal-Weight and raised the price target from $8 to $9. Its RSI value is 73.01, and the stock price fell 1.3% to close at $10.25 on Monday.
Despite Barclays' raised price target, the company's high RSI value suggests potential downside risk.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Modine Manufacturing recently acquired Napps Technology. Its RSI value is 74.68, and the stock price fell 1.3% to close at $37.19 on Monday.
Despite the recent acquisition, the company's high RSI value suggests potential downside risk.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Newegg Commerce recently highlighted its use of AI in online shopping. Its RSI value is 81.37, and the stock price gained 13.3% to close at $1.66 on Monday.
Despite recent gains, the company's high RSI value suggests potential downside risk.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
RH recently lowered its FY23 adjusted operating margin guidance. Its RSI value is 77.61, and the stock price fell 3.2% to close at $364.99 on Monday.
The company's lowered guidance and high RSI value suggest potential downside risk.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Ermenegildo Zegna recently appointed a new CEO. Its RSI value is 75.43, and the stock price fell 1.2% to settle at $14.39 on Monday.
Despite the new CEO appointment, the company's high RSI value suggests potential downside risk.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100