Top 5 Consumer Stocks That Should Keep You Up At Night


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.

Escalade, Incorporated ESCA

  • Escalade reported a drop in quarterly earnings. "During the full-year 2022, we continued to build leading market positions within key indoor and outdoor recreational categories, while navigating supply chain disruptions and a return to more normalized demand conditions," said Walter P. Glazer, Jr., President and CEO of Escalade. The company’s stock has a 52-week high of $14.79 .
  • RSI Value: 76.65
  • ESCA Price Action: Shares of Escalade fell 0.9% to close at $14.60 on Monday.

Red Robin Gourmet Burgers, Inc. RRGB

  • Red Robin reported better-than-expected Q4 sales results. G.J. Hart, Red Robin’s President and Chief Executive Officer, said, "We completed important work in 2022 and now turn the page to a fresh new year. The ‘North Star’ plan we rolled out in January will guide our efforts over the next three years and is geared towards delivering the exceptional restaurant experience our Guests deserve." The company’s stock has a 52-week high of $17.75.
  • RSI Value: 76.21
  • RRGB Price Action: Shares of Red Robin Gourmet Burgers fell 0.7% to close at $14.02 on Monday.

Duolingo, Inc. DUOL

  • Duolingo reported better-than-expected Q4 results. “Our 2022 results were extraordinary, even relative to the lofty expectations we had for ourselves, with revenue growing by 47%, and cash from operations increasing by over $44 million from last year,” said Luis von Ahn, Co-Founder and CEO of Duolingo. The company has a 52-week high of $139.48.
  • RSI Value: 73.52
  • DUOL Price Action: Shares of Duolingo rose 0.1% to close at $136.60 on Monday.

Solo Brands, Inc. DTC

  • Solo Brands reported better-than-expected Q4 adjusted EPS and sales results. "Our fourth quarter and full year 2022 results surpassed our expectations and showcased our differentiated model that delivers top-line growth with solid adjusted EBITDA and positive free cash flow. Throughout 2022 our team executed our playbook, and as a result, our direct-to-consumer, wholesale and international businesses all grew," said John Merris, CEO of Solo Brands. The company’s 52-week high is $10.21.
  • RSI Value: 70.59
  • DTC Price Action: Shares of Solo Brands rose 1.9% to close at $6.89 on Monday.

TravelCenters of America Inc. TA

  • TravelCenters Of America posted upbeat quarterly earnings. The company has a 52-week high of $87.17.
  • RSI Value: 84.28
  • TA Price Action: Shares of TravelCenters of America rose 0.4% to settle at $86.60 on Monday.

Read More: Over $1M Bet On Stifel Financial? Check Out These 3 Stocks Insiders Are Buying

Market News and Data brought to you by Benzinga APIs
Posted In: NewsShort IdeasSmall CapPre-Market OutlookMarketsTrading IdeasConsumer StocksExpert IdeasOverbought stocksRSI
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!