5 Consumer Stocks That Are Flying - And May Collapse

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.

Cooper-Standard Holdings Inc. CPS

• Cooper Standard, during November, reported worse-than-expected Q3 EPS. The company’s stock has a 52-week high of $27.35 .
• RSI Value: 80.94
• CPS Price Action: Shares of Cooper-Standard rose 6.5% to settle at $11.34 on Friday and added 0.5% in after-hours trading.

Studio City International Holdings Limited MSC

• Studio City Intl Hldgs, during November, posted a Q3 adjusted loss of $0.44 per share. The company’s stock has a 52-week high of $7.87.
• RSI Value: 80.02
• MSC Price Action: Shares of Studio City International Holdings jumped 10.9% to close at $7.54 on Friday and added 4.8% in after-hours trading.

Burlington Stores, Inc. BURL

• Loop Capital upgraded Burlington Stores from Sell to Hold and raised the price target from $105 to $200. The company has a 52-week high of $252.62.
• RSI Value: 77.92
• BURL Price Action: Shares of Burlington Stores gained 1.4% to close at $223.91 on Friday and lost 0.8% in after-hours trading.

Global Business Travel Group, Inc. GBTG

• Evercore ISI Group recently initiated coverage on Global Business Travel with an Outperform rating and announced a price target of $8. The company’s 52-week high is $8.40.
• RSI Value: 77.49
• GBTG Price Action: Shares of Global Business Travel Group fell 1.3% to close at $7.07 on Friday and lost 12.9% in after-hours trading.

Vipshop Holdings Limited VIPS

• Vipshop Holdings, during November, reported better-than-expected Q3 EPS results. The company has a 52-week high of $15.71.
• RSI Value: 76.18
• VIPS Price Action: Shares of Vipshop Holdings fell 1.2% to settle at $15.40 on Friday and lost 0.7% in after-hours trading.

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