Top 5 Defensive Stocks That May Fall Off A Cliff In February

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The most overbought stocks in the consumer staples 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.

e.l.f. Beauty, Inc. ELF

  • e.l.f. Beauty reported better-than-expected Q3 results and issued strong FY23 guidance. Tarang Amin, the company's chairman and CEO said, "We delivered a terrific third quarter - growing our net sales by 49% and expanding our market share by 150 basis points, according to Nielsen. This quarter marked our 16th consecutive quarter of net sales growth, reflecting the continued strong execution by the e.l.f. Beauty team."  The company’s stock has a 52-week high of $72.20. 
  • RSI Value: 70.26
  • ELF Price Action: Shares of e.l.f. Beauty gained 4.9% to close at $72.03 on Tuesday and added 0.3% in after-hours trading.

USANA Health Sciences, Inc. USNA

  • The company posted upbeat quarterly results. The company’s stock has a 52-week high of $91.77.
  • RSI Value: 70.69
  • USNA Price Action: Shares of USANA Health jumped 1.7% to close at $59.76 on Tuesday.
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The Beauty Health Company SKIN

  • BeautyHealth, during November, entered into $100 million accelerated share repurchase agreement. The company has a 52-week high of $20.49.
  • RSI Value: 70.63
  • SKIN Price Action: Shares of Beauty Health rose 3.4% to close at $12.85 on Tuesday and added 0.1% in after-hours trading.

Coty Inc. COTY

  • Raymond James recently maintained Coty with an Outperform and raised the price target from $10 to $11. The company’s 52-week high is $10.58.
  • RSI Value: 79.09
  • COTY Price Action: Shares of Coty gained 1.9% to close at $10.35 on Tuesday and added 0.2% in after-hours trading.

Dole plc DOLE

  • Dole Plc agreed to sell fresh vegetables division to an affiliate of Fresh Express for $293 million gross proceeds. The company has a 52-week high of $15.78.
  • RSI Value: 80.13
  • DOLE Price Action: Shares of Dole rose 0.2% to settle at $11.54 on Tuesday and added 3.4% in after-hours trading.

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