Top 3 Consumer Stocks That Could Blast Off This Month


The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued 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 oversold when the RSI is below 30, according to Benzinga Pro.

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

Papa John’s International, Inc. PZZA

  • On May 9, Papa John's reported a first-quarter fiscal 2024 decline of 2.5% year-over-year to $513.92 million, missing the consensus of $544.45 million. "Our teams are taking a disciplined approach to running the business, improving restaurant-level margins and increasing operating profits despite a challenging environment in the first quarter," said Ravi Thanawala, Papa Johns Interim Chief Executive Officer and Chief Financial Officer. The company's stock fell around 15% over the past month and has a 52-week low of $51.82 .
  • RSI Value: 22.11
  • PZZA Price Action: Shares of Papa John’s rose 0.5% to close at $52.55 on Tuesday.

Chegg, Inc. CHGG           

  • On April 29, Chegg reported upbeat first-quarter financial results, but issued weak revenue forecast for the second quarter. Chegg also announced the appointment of Nathan Schultz as Chief Executive Officer, effective June 1. "We had a very productive first quarter and successfully rolled out the first of many AI enabled experiences that will strengthen our product-market fit in 2024 and beyond," said Nathan Schultz, incoming CEO & President. " The company's stock fell around 32% over the past month. It has a 52-week low of $4.51.
  • RSI Value: 25.02
  • CHGG Price Action: Shares of Chegg gained 2.4% to close at $4.68 on Tuesday.

Expedia Group, Inc. EXPE

  • On May 2, Expedia Group lowered its full-year guidance. "Given the Vrbo drag and the rate of acceleration in B2C thus far, we are lowering our full year guidance to a range of mid to high single digit top line growth with margins relatively in line versus last year. Despite this slower than expected acceleration, the underpinning of the work we have done on the platform is in place and I have every confidence in the teams to continue to leverage these capabilities to drive even stronger growth," Peter Kern, CEO of Expedia Group said. The company's stock fell around 12% over the prior month and has a 52-week low of $91.92
  • RSI Value: 29.60
  • EXPE Price Action: Shares of Expedia rose 0.7% to close at $113.48 on Tuesday.

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