Top 4 Consumer Stocks That You May Want To Dump In Q4
Portfolio Pulse from Avi Kapoor
Four consumer discretionary stocks are showing overbought signals according to their Relative Strength Index (RSI) values, which may concern momentum-focused investors. Gaotu Techedu Inc. (GOTU), Carrols Restaurant Group, Inc. (TAST), American Public Education, Inc. (APEI), and Sonos, Inc. (SONO) have all seen significant price increases and high RSI values, suggesting they could be due for a pullback.
December 14, 2023 | 11:45 am
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American Public Education's stock rose 63% in a month with an RSI of 74.93, indicating a possible overbought scenario and a chance for a price retraction.
With an RSI well above the overbought threshold and a significant recent price increase, APEI may see a price correction in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Gaotu Techedu's stock has jumped 45% over the past month with a high RSI of 78.88, indicating an overbought condition that could lead to a short-term price decline.
A high RSI value typically indicates that a stock may be overextended and could face a correction. GOTU's recent price surge and high RSI suggest it may be due for a pullback.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Sonos has seen a 51% increase in its stock price over the past month with an RSI of 84.63, strongly suggesting an imminent price correction.
SONO's extremely high RSI is a classic overbought signal, making it likely that the stock will experience a short-term decline as traders may take profits.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
Carrols Restaurant's stock has gained 11% over five days with an RSI of 74.24, potentially signaling a short-term downward price movement.
The RSI above 70 often suggests a stock is overbought. TAST's RSI of 74.24, following a quick gain, could mean the stock is set for a short-term dip.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 90