Top 4 Defensive Stocks That May Fall Off A Cliff In December
Portfolio Pulse from Avi Kapoor
Four consumer staples stocks, Universal Corporation (UVV), e.l.f. Beauty (ELF), Freshpet (FRPT), and Coca-Cola Consolidated (COKE), are showing high Relative Strength Index (RSI) values, indicating they may be overbought. UVV reported a significant increase in operating income, ELF raised its FY23 guidance, FRPT also reported better-than-expected results and raised guidance, and COKE posted increased quarterly sales. Despite positive news, their high RSI values suggest a potential short-term pullback.
December 15, 2023 | 1:41 pm
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NEGATIVE IMPACT
Coca-Cola Consolidated saw a 24% stock increase over the past month after posting higher quarterly sales. The RSI is at an elevated 89.45.
Coca-Cola Consolidated's high RSI value may lead to a price pullback as the stock appears overbought, prompting profit-taking.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
e.l.f. Beauty reported better-than-expected Q2 results and raised FY23 guidance, with the stock gaining 13% over five days. RSI is at 82.40.
ELF's recent gains and high RSI value may lead to a short-term correction as the stock could be perceived as overbought.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Freshpet's stock rose 22% over the past month after reporting better-than-expected Q3 results and raising FY23 guidance. RSI stands at 85.78.
With FRPT's RSI indicating an overbought condition, investors might expect a price correction in the near term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Universal Corporation reported a 30% and 46% increase in operating income for the six months and quarter, respectively. The stock is up 18% over the past month, with a high RSI of 83.68.
The high RSI value suggests that UVV may be overbought, which could lead to a short-term price decline as traders may consider taking profits.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90