Top 5 Risk Off Stocks That May Crash This Month

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.

Calavo Growers, Inc. CVGW

  • Calavo Growers reported worse-than-expected second-quarter financial results. “I am excited to be back at Calavo, a company that I helped to build and lead as CEO for 20 years and as Chairman for 28 years,” said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc. The company’s stock has a 52-week high of $45.50. .
  • RSI Value: 71.81
  • CVGW Price Action: Shares of Calavo Growers fell 0.4% to close at $35.42 on Tuesday.

Oil-Dri Corporation of America ODC

  • Oil-Dri announced price increases on its industrial and automotive clay absorbents. The company’s stock has a 52-week high of $64.00.
  • RSI Value: 71.31
  • ODC Price Action: Shares of Oil-Dri Corporation of America fell 0.4% to close at $62.08 on Tuesday.

Grocery Outlet Holding Corp. GO

  • Grocery Outlet posted better-than-expected quarterly results. RJ Sheedy, President and CEO of Grocery Outlet, commented, "Our first quarter performance exceeded expectations driven by strong same store sales results, gross margin expansion and bottom-line leverage." The company has a 52-week high of $46.37.
  • RSI Value: 72.92
  • GO Price Action: Shares of Grocery Outlet fell 0.3% to close at $33.21 on Tuesday.

WD-40 Company WDFC

  • WD-40 Co reported a third-quarter FY23 revenue increase of 15% Y/Y at $141.7 million, beating the consensus of $138.4 million. "We target a compound annual growth rate for maintenance product revenue in the mid-to-high single digits on a constant currency basis. Achieving year to date growth of 7 percent in constant currency is in-line with our long-term objectives," said Steve Brass, President and CEO. The company’s 52-week high is $234.69.
  • RSI Value: 71.74
  • WDFC Price Action: Shares of WD-40 Company gained 0.1% to close at $224.67 on Tuesday.

Costco Wholesale Corporation COST

  • Costco reported a better-than-expected June comp of (1.4%) versus the analyst's forecast of (2.0%). The company has a 52-week high of $564.75.
  • RSI Value: 70.58
  • COST Price Action: Shares of Costco Wholesale rose 0.1% to settle at $553.59 on Tuesday.

 

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