Top 5 Consumer Stocks That May Crash In August

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.

MakeMyTrip Limited MMYT

  • MakeMyTrip Limited reported better-than-expected first-quarter financial results. The company’s stock has a 52-week high of $38.79. .
  • RSI Value: 78.54
  • MMYT Price Action: Shares of MakeMyTrip fell 0.7% to close at $38.45 on Tuesday.

Perdoceo Education Corporation PRDO

  • Perdoceo Education posted upbeat quarterly results. "Second quarter results came in ahead of our expectations, as we experienced further improvements in student retention and engagement, supported by various operating changes and technology upgrades within our onboarding, academic and student support processes," said Andrew Hurst, Chief Executive Officer. The company’s stock has a 52-week high of $17.06.
  • RSI Value: 70.55
  • PRDO Price Action: Shares of Perdoceo Education fell 0.1% to close at $16.38 on Tuesday.

Capri Holdings Limited CPRI

  • Capri Holdings reported better-than-expected first-quarter earnings. John D. Idol, the Company's Chairman and Chief Executive Officer, said, “As announced earlier today, the planned acquisition of Capri Holdings by Tapestry marks a major milestone for our company. It is a testament to all that our teams have achieved in building Versace, Jimmy Choo and Michael Kors into the iconic and powerful luxury fashion houses they are today.” The company has a 52-week high of $69.25.
  • RSI Value: 75.05
  • CPRI Price Action: Shares of Capri Holdings gained 0.1% to close at $52.45 on Tuesday.

MINISO Group Holding Limited MNSO

  • MINISO reported better-than-expected fourth-quarter financial results. Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, "In spite of the short-term headwinds and uncertainties brought by the macro environment, we remained focused on our long-term strategic goals: delivering on our globalization strategy, bolstering the strength of our product offerings and optimizing our store network." The company’s 52-week high is $25.63.
  • RSI Value: 72.40
  • MNSO Price Action: Shares of MINISO Group gained 9.3% to close at $25.09 on Tuesday.

H&R Block, Inc. HRB

  • H&R Block reported better-than-expected fourth-quarter results and raised its quarterly dividend. The company has a 52-week high of $45.93.
  • RSI Value: 78.03
  • HRB Price Action: Shares of H&R Block rose 0.2% to settle at $39.95 on Tuesday.


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