Top 2 Consumer Stocks That May Implode In May

As of May 5, 2025, two stocks in the consumer discretionary 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.

ThredUp Inc TDUP

  • On April 28, Telsey Advisory Group analyst Dana Telsey maintained ThredUp with an Outperform rating and raised the price target from $3 to $6. The company's stock jumped around 57% over the past month and has a 52-week high of $4.58.
  • RSI Value: 79.4                                
  • TDUP Price Action: Shares of ThredUp jumped 4% to close at $4.42 on Friday.
  • Edge Stock Ratings: 99.56 Momentum score with Value at 50.12.

Five Below Inc FIVE

  • On May 2, Five Below raised its first-quarter outlook. The company's stock gained around 38% over the past month and has a 52-week high of $147.64.
  • RSI Value: 71.8
  • FIVE Price Action: Shares of Five Below gained 11.9% to close at $84.31 on Friday.

BZ Edge Rankings: Find out where other stocks stand—explore the full comparison now.

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FIVEFive Below Inc
$85.25-0.87%

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Got Questions? Ask
Which consumer stocks might face declines soon?
How could ThredUp's high RSI impact investors?
Is Five Below at risk despite its gains?
What trends could affect consumer discretionary stocks?
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What other consumer companies are showing signs of overbought?
How does momentum trading affect stock valuations?
Could retail spending impact these stocks' future?
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