Top 5 Consumer Stocks That May Plunge This Quarter

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.

Xcel Brands, Inc. XELB

  • Xcel Brands filed for non-timely 10-Q with the U.S. SEC for the three months ended March 31, 2023, expects to report net loss per share of about 29 cents per share. The company’s stock has a 52-week high of $1.99 .
  • RSI Value: 71.23
  • XELB Price Action: Shares of Xcel Brands jumped 20.3% to close at $0.77 on Tuesday.

NeoGames S.A. NGMS

  • NeoGames agreed to be acquired by Australia's Aristocrat Leisure Limited, a gaming and technology company. “After careful consideration, the Board determined that Aristocrat’s proposal provides shareholders with compelling value, further validating the strength of the business that NeoGames has built,” said CEO Moti Malul. The company’s stock has a 52-week high of $27.50.
  • RSI Value: 83.45
  • NGMS Price Action: Shares of NeoGames fell 0.1% to close at $27.16 on Tuesday.

Birks Group Inc. BGI

  • Birks Group reported the passing of a member of its Board of Directors, Mr. Louis L. Roquet, on Feb. 24, 2023. The company has a 52-week high of $10.02.
  • RSI Value: 84.38
  • BGI Price Action: Shares of Birks Group fell 0.7% to close at $9.85 on Tuesday.

Ruth's Hospitality Group, Inc. RUTH

  • Darden Restaurants recently commenced tender offer to acquire Ruth's Hospitality Group for $21.50 per share in cash. The company’s 52-week high is $21.50.
  • RSI Value: 79.31
  • RUTH Price Action: Shares of Ruth's Hospitality closed at $21.38 on Tuesday.

Chipotle Mexican Grill, Inc. CMG

  • Chipotle reported better-than-expected first-quarter results. The company has a 52-week high of $2,077.29.
  • RSI Value: 74.90
  • CMG Price Action: Shares of Chipotle rose 0.2% to settle at $2,050.22 on Tuesday.


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