Vipshop, Bluegreen Vacations Are Among Overbought Consumer Discretionary Stocks: Are They Worth A Look?

The most overbought stocks in the consumer discretionary sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

Vipshop Holdings Limited VIPS

  • Vipshop Holdings, last month, reported better-than-expected Q3 EPS results. The company’s stock has a 52-week high of $13.77 .
  • RSI Value: 75.12
  • VIPS Price Action: Shares of Vipshop Holdings gained 2.2% to settle at $13.64 on Monday.

Studio City International Holdings Limited MSC

  • Studio City, last month, posted a narrower quarterly loss. The company’s stock has a 52-week high of $7.48.
  • RSI Value: 71.86
  • MSC Price Action: Shares of Studio City International fell 24.6% to close at $4.29 on Monday, and gained 16.6% in the after-hours trading session.

Mondee Holdings, Inc. MOND

  • Roth Capital recently initiated coverage on Mondee Hldgs with a Buy rating and announced a price target of $12. The company, last month, posted a Q3 loss of $0.06 per share. The company has a 52-week high of $16.98.
  • RSI Value: 70.49
  • MOND Price Action: Shares of Mondee Holdings dipped 7.8% to close at $11.30 on Monday.

Gaotu Techedu Inc. GOTU

  • Gaotu Techedu, last month, reported a third-quarter FY22 sales decline of 45.6% year-on-year to RMB606.2 million ($85.21 million).The company’s 52-week high is $3.27.
  • RSI Value: 82.66
  • GOTU Price Action: Shares of Gaotu Techedu gained 3.9% to close at $3.24 on Monday, but dropped over 6% in today’s pre-market trading.


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Bluegreen Vacations Holding Corporation BVH

  • Bluegreen Vacations recently amended its previously announced tender offer to purchase up to 4.5 million shares to increase the offer price from $22.17 per share to $25.00 per share in cash.. The company has a 52-week high of $36.10.
  • RSI Value: 74.37
  • BVH Price Action: Shares of Bluegreen Vacations gained 0.2% to settle at $24.67 on Monday.
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