Top 2 Consumer Stocks That May Plunge This Quarter
Portfolio Pulse from Avi Kapoor
Two consumer discretionary stocks, Alibaba Group Holding Limited (NYSE:BABA) and Brinker International, Inc. (NYSE:EAT), are highlighted as overbought according to their RSI values, signaling potential short-term declines. Alibaba introduced a new shopping app for Apple's Vision Pro, boosting its stock by 11% over the past month, while Brinker reported strong Q3 results and raised its FY24 guidance, leading to a 13% stock increase over five days.
May 03, 2024 | 12:15 pm
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NEGATIVE IMPACT
Alibaba's stock may face short-term pressure due to its overbought status, despite the recent launch of a new shopping app for Apple's Vision Pro.
Alibaba's recent gains and the introduction of a new product have increased its visibility and potentially its stock price. However, the RSI indicator suggests the stock is overbought, which historically leads to a short-term price correction.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Brinker International's stock might decline in the short term due to its overbought status, despite strong Q3 results and raised FY24 guidance.
Brinker's positive financial update and guidance raise have contributed to its stock's recent rise. Nonetheless, the overbought RSI level indicates a likely short-term reversal in stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90