Top 4 Defensive Stocks That May Plunge In Q3


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.

Casey's General Stores, Inc. CASY

  • Casey’s General Stores reported a first-quarter FY24 sales decline of 13.2% year-on-year to $3.87 billion, missing the analyst consensus of $3.89 billion. Casey’s maintained fiscal 2024 outlook for inside same-store sales to increase 3% - 5%, with an inside margin of about 40% - 41%. The company’s stock has a 52-week high of $282.00. .
  • RSI Value: 77.00
  • CASY Price Action: Shares of Casey's General fell 0.4% to close at $278.84 on Friday.

Hostess Brands, Inc. TWNK

  1. The J. M. Smucker announced plans to acquire Hostess Brands for $34.25 per share, implying a total enterprise value of $5.6 billion. The company’s stock has a 52-week high of $33.74.
  2. RSI Value: 84.90
  3. TWNK Price Action: Shares of Hostess Brands fell 0.1% to close at $33.37 on Friday.

Albertsons Companies, Inc. ACI

  • Albertsons shares announced a divestiture agreement for 413 stores and other assets with C&S Wholesale Grocers. The company has a 52-week high of $29.19.
  • RSI Value: 72.34
  • ACI Price Action: Shares of Albertsons Companies gained 0.2% to close at $23.54 on Friday.

Thorne HealthTech, Inc. THRN

  • Thorne HealthTech entered into a definitive agreement to be acquired by L Catterton, a global consumer-focused investment firm, at $10.20 per share in cash. "Together with their deep expertise in the health and wellness industry, global reach, and extensive operational capabilities, I am confident L Catterton is the right partner to fuel Thorne's long-term growth," said Chairman and CEO Paul Jacobson. The company’s 52-week high is $10.19.
  • RSI Value: 73.30
  • THRN Price Action: Shares of Thorne HealthTech gained 0.5% to close at $10.19 on Friday.

Read More: Investor Sentiment Declines After S&P 500 Falls For Second Straight Week

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