Top 4 Risk Off Stocks That May Collapse This Month
Portfolio Pulse from Avi Kapoor
Four consumer staples stocks with high RSI values, indicating potential overbought conditions, are The Honest Company, Inc. (HNST), Turning Point Brands, Inc. (TPB), Universal Corporation (UVV), and Mama's Creations, Inc. (MAMA). HNST expanded its partnership with Tinuiti, TPB reported a decrease in sales, UVV showed an increase in adjusted EPS, and MAMA priced a public offering. All stocks experienced price movements on Tuesday, with HNST and TPB closing lower, while UVV and MAMA closed nearly flat.

January 03, 2024 | 1:13 pm
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NEGATIVE IMPACT
The Honest Company's stock may face short-term pressure due to its high RSI value of 72.15, indicating an overbought condition despite recent partnership expansion with Tinuiti.
The high RSI value suggests that HNST may be overextended after its recent 32% jump, and the stock's decline on Tuesday could indicate the beginning of a short-term correction.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Mama's Creations may see short-term volatility with an RSI of 71.46 after pricing a public offering and a 25% stock gain over the past month.
The RSI near the overbought threshold and the recent public offering could lead to price instability in the short term, despite the stock's recent gains.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Turning Point Brands may see a short-term negative impact with an RSI of 71.40, after reporting a year-over-year sales decline in its Zig-Zag products.
The RSI indicates an overbought condition, which could lead to a price correction, especially in light of the recent negative sales report.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
Universal Corporation's stock, with an RSI of 82.83, may experience a pullback after a significant increase in adjusted EPS and a 13% rise over the past month.
The extremely high RSI value suggests that UVV is significantly overbought, which could result in a short-term downturn despite positive earnings news.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85