Top 5 Consumer Stocks That Are Ticking Portfolio Bombs


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.

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 stock has a 52-week high of $8.27.
  • RSI Value: 74.12
  • DTC Price Action: Shares of Solo Brands rose 2.6% to close at $8.24 on Monday.

TravelCenters of America Inc. TA

  • TravelCenters of America filed definitive proxy for BP transaction. The company’s stock has a 52-week high of $87.17.
  • RSI Value: 76.88
  • TA Price Action: Shares of TravelCenters of America rose 0.4% to close at $86.86 on Monday.

Lululemon Athletica Inc. LULU

  • Lululemon Athletica reported better-than-expected Q4 results and issued strong guidance. Calvin McDonald, Chief Executive Officer stated, "In the fourth quarter and full year 2022, we delivered strong results across the business driven by our innovative products, powerful guest experiences, and strategic market expansion." The company has a 52-week high of $410.70.
  • RSI Value: 74.86
  • LULU Price Action: Shares of Lululemon fell 0.3% to close at $363.37 on Monday.

Torrid Holdings Inc. CURV

  • Torrid reported Q4 financial results and issued FY23 sales guidance above analyst estimates. The company’s 52-week high is $8.29.
  • RSI Value: 71.75
  • CURV Price Action: Shares of Torrid Holdings fell 1.2% to close at $4.20 on Monday.

NaaS Technology Inc. NAAS

  • Naas Technology posted a Q3 loss of $0.05 per share. The company has a 52-week high of $22.45.
  • RSI Value: 81.27
  • NAAS Price Action: Shares of NaaS Technology fell 3.1% to settle at $11.98 on Monday.

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Posted In: NewsPenny StocksShort IdeasSmall CapPre-Market OutlookMarketsTrading IdeasApparel, Accessories & Luxury GoodsConsumer DiscretionaryConsumer StocksExpert IdeasOverbought stocksRSI
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