Top 3 Defensive Stocks That May Collapse In February
Portfolio Pulse from Avi Kapoor
As of Feb. 26, 2024, Freshpet, Inc. (FRPT), Walmart Inc. (WMT), and Costco Wholesale Corporation (COST) in the consumer staples sector are considered overbought based on their RSI values, indicating potential short-term performance concerns. Freshpet's recent earnings beat and Walmart's Q4 FY24 sales growth have contributed to their stock gains, while Costco's January sales increase supports its positive momentum.

February 26, 2024 | 1:18 pm
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NEGATIVE IMPACT
Costco's stock, with an RSI of 74.13, is overbought following a 4.5% YOY increase in January net sales.
Costco's recent sales growth has contributed to its stock's positive momentum, but its RSI exceeding 70 suggests it may be overbought, indicating potential for a short-term correction.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Freshpet's stock is considered overbought with an RSI of 71.14, following upbeat quarterly earnings and a recent 3% gain.
Freshpet's recent earnings beat and subsequent stock gain have pushed its RSI above 70, typically indicating overbought conditions and potential for a short-term pullback.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Walmart's stock is overbought with an RSI of 73.11 after reporting a 5.7% YOY net sales growth in Q4 FY24, beating consensus.
Walmart's better-than-expected Q4 FY24 sales growth has led to a significant stock price increase, pushing its RSI into overbought territory, which may signal a short-term downside risk.
CONFIDENCE 75
IMPORTANCE 85
RELEVANCE 90