Top 5 Consumer Stocks You May Want To Dump This Quarter
Portfolio Pulse from Avi Kapoor
Five consumer discretionary stocks are showing overbought signals according to their Relative Strength Index (RSI) values, suggesting potential short-term pullbacks. MEDIROM Healthcare Technologies Inc. (MRM), Educational Development Corporation (EDUC), Citi Trends, Inc. (CTRN), Garrett Motion Inc. (GTX), and Lennar Corporation (LEN) have all seen significant price increases recently, with RSIs above 70, indicating they may be overbought.
January 02, 2024 | 2:00 pm
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NEGATIVE IMPACT
Citi Trends, Inc. has increased by about 19% over the past month, with an RSI of 70.58, hinting at overbought conditions.
With the stock's RSI just above the overbought level, there's a chance that the current price might not be sustained in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Educational Development Corporation's stock has gained about 30% over the past month, with an RSI of 70.99, signaling it may be overbought.
The recent gains and RSI close to the overbought threshold could lead to a price pullback as investors reassess the stock's valuation.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Garrett Motion Inc. has seen a 28% increase over the past month, with a high RSI of 82.84, strongly suggesting an overbought condition.
The extremely high RSI is a clear indicator that the stock may be due for a correction, as it is well above the typical overbought threshold.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 95
NEGATIVE IMPACT
Lennar Corporation's stock has risen about 30% over the past five days, with an RSI of 71.15, indicating it may be overbought.
The stock's quick rise and RSI just above 70 could lead to a short-term retracement as the market digests the recent gains.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
MEDIROM Healthcare Technologies Inc. has seen a 43% increase over the past five days, with an RSI of 73.29, indicating potential overbought conditions.
The significant price jump and high RSI value suggest that MRM may experience a short-term price correction as traders might consider taking profits.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90