Top 5 Consumer Stocks That May Implode 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.

Vroom, Inc. VRM

  • Vroom reported worse-than-expected first-quarter sales results. Tom Shortt, Chief Executive Officer of Vroom, said, "In the first quarter of 2023, consistent with our Long-Term Roadmap, we continued to make progress on our three key objectives and four strategic initiatives, improving adjusted EBITDA by $10.0 million1 sequentially." The company’s stock has a 52-week high of $2.76. .
  • RSI Value: 70.35
  • VRM Price Action: Shares of Vroom fell 8.3% to close at $1.44 on Friday.

Li Auto Inc. LI

  • Li Auto reported 32,575 deliveries in June, representing a 150.1% year-over-year surge. “Benefiting from the comprehensive enhancement of our organizational processes and operating capabilities, our monthly deliveries exceeded 30,000 for the first time, making Li Auto currently the only Chinese premium brand to achieve this milestone,” commented Xiang Li, chairman and chief executive officer of Li Auto. The company’s stock has a 52-week high of $40.88.
  • RSI Value: 74.05
  • LI Price Action: Shares of Li Auto rose 2.4% to close at $35.10 on Friday.

XPeng Inc. XPEV

  1. In June, XPENG delivered 8,620 Smart EVs, representing a 15% increase over the prior month, with the P7 series deliveries up 17% over the prior month.. The company has a 52-week high of $33.56.
  2. RSI Value: 79.40
  3. XPEV Price Action: Shares of XPeng rose 13.4% to close at $13.42 on Friday.

Ford Motor Company F

  • Ford has secured major international investor for its Saarlouis plant in Germany. The company’s 52-week high is $16.68.
  • RSI Value: 76.45
  • F Price Action: Shares of Ford rose 1.2% to close at $15.13 on Friday.

Tesla, Inc. TSLA

  • Tesla, Inc. TSLA reported record deliveries numbers for the second quarter. The company’s quarterly deliveries came in at 466,140 units, compared to the company-compiled estimate of 446,823 units. The company has a 52-week high of $314.67.
  • RSI Value: 71.41
  • TSLA Price Action: Shares of Tesla rose 1.7% to settle at $261.77 on Friday.


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