Top 5 Risk Off Stocks That May Plunge This Quarter

As of March 11, 2024, five stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

Here’s the latest list of major overbought players in this sector.

Vintage Wine Estates, Inc. VWE

• On March 5, Vintage Wine Estates issued an update on asset sales as company progressed towards streamlined business model and announced a forbearance agreement with lenders. The company’s stock gained around 25% over the past five days and has a 52-week high of $1.4550 .
• RSI Value: 73.81
• VWE Price Action: Shares of Vintage Wine Estates gained 12.9% to close at $0.5826 on Friday.

Vital Farms, Inc. VITL

• On March 7, Vital Farms reported better-than-expected fourth-quarer results and issued revenue guidance above estimates. For FY24, the company sees net revenue of at least $552 million, which represents at least a 17% increase compared to fiscal year 2023 (estimate: $550.6 million). The company’s stock gained around 33% over the past month and has a 52-week high of $21.26.
• RSI Value: 78.60
• VITL Price Action: Shares of Vital Farms gained 3.1% to close at $20.51 on Friday.

Sprouts Farmers Market, Inc. SFM

• On Feb. 22, Sprouts Farmers Market reported better-than-expected fourth-quarter results. The company’s stock gained around 21% over the past month has a 52-week high of $65.53.
• RSI Value: 81.50
• SFM Price Action: Shares of Sprouts Farmers Market gained 0.1% to close at $63.35 on Friday.

Colgate-Palmolive Company CL

• On Jan. 26, Colgate-Palmolive reported upbeat fourth-quarter financial results. “We leveraged our strong margin performance to invest behind building our brands, with a 19% increase in advertising spending in 2023, and we expect higher levels of brand investment in 2024,” said Noel Wallace, Chairman, President and Chief Executive Officer. The company’s stock jumped around 5% over the past month and has a 52-week high is $88.50.
• RSI Value: 74.69
• CL Price Action: Shares of Colgate-Palmolive fell 0.1% to close at $88.07 on Friday.

Target Corporation TGT

• On March 5, Target reported fourth-quarter FY23 revenue growth of 1.7% year-on-year to $31.92 billion, beating the analyst consensus estimate of $31.83 billion. The company’s stock jumped around 10% over the past five days and has a 52-week high of $175.53.
• RSI Value: 70.39
• TGT Price Action: Shares of Target fell 1.1% to close at $169.72 on Friday.

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