Top 2 Risk Off Stocks That May Plunge In Q2


As of May 6, 2024, two 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.

Sprouts Farmers Market, Inc. SFM

  • On May 1, Sprouts Farmers Market posted better-than-expected quarterly results. “We were pleased with our impressive financial results this quarter, with strength in comparable store sales, traffic, and ecommerce,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “These outcomes highlight the effectiveness of our strategy and the exceptional execution by our team members across the country. We are reinforcing our position as a leading specialty food retailer as we build new stores in line with our growth plans.” The company's stock gained around 10% over the past five days and has a 52-week high of $74.03 .
  • RSI Value: 75.39                              
  • SFM Price Action: Shares of Sprouts Farmers Market gained 2.3% to close at $73.68 on Friday.

Keurig Dr Pepper Inc KDP

  • On April 25, Keurig Dr Pepper reported first-quarter FY24 sales growth of 3.5% year-on-year to $3.47 billion, beating the analyst consensus estimate of $3.407 billion. Keurig reaffirmed FY24 constant currency net sales growth in a mid-single-digit range and Adjusted diluted EPS growth in a high-single-digit range. The company's stock gained around 10% over the past five days and has a 52-week high of $34.66
  • RSI Value: 74.09
  • KDP Price Action: Shares of Keurig Dr Pepper rose 0.8% to close at $33.83 on Friday.

Now Read This: Wall Street’s Most Accurate Analysts’ Views On 3 Tech & Telecom Stocks Delivering High-Dividend Yields

Market News and Data brought to you by Benzinga APIs
Posted In: NewsShort IdeasPre-Market OutlookMarketsExpert IdeasOverbought stocksrisk offRSI
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!