Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of June 5, 2024, four 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.
Stitch Fix Inc (NASDAQ:SFIX)
- On June 4, Stitch Fix posted better-than-expected third-quarter financial results. "At Stitch Fix, we are on a mission to help people discover the styles they will love that fit perfectly so they always look and feel their best, and this commitment is at the heart of our transformation," said Matt Baer, CEO of Stitch Fix. The company's stock gained around 18% over the past five days and has a 52-week high of $5.20.
- RSI Value: 75.18
- SFIX Price Action: Shares of Stitch Fix rose 3.5% to close at $2.67 on Tuesday.
- On May 22, TJX reported better-than-expected first-quarter financial results. The company reported first-quarter FY25 sales growth of 5.9% year-on-year to $12.479 billion, beating the analyst consensus estimate of $12.463 billion. The company's stock gained around 9% over the past month and has a 52-week high of $105.95.
- RSI Value: 74.19
- TJX Price Action: Shares of TJX rose 0.4% to close at $105.87 on Tuesday.
- On May 14, Boot Barn posted upbeat earnings for its fourth quarter, but issued soft FY24 forecast. Jim Conroy, president and chief executive officer, commented, "I am pleased with our fourth quarter performance and proud of the efforts of the entire Boot Barn team. We crossed the 400-store milestone prior to year-end and extended the Boot Barn brand to 45 states across the country. In the year, revenue showed modest growth despite experiencing a mid-single digit decline in consolidated same store sales and cycling a 53-week fiscal year. We also grew exclusive brand penetration by 370 basis points which contributed to merchandise margin expansion." The company's stock gained around 17% over the past five days and has a 52-week high of $129.95.
- RSI Value: 78.17
- BOOT Price Action: Shares of Boot Barn gained 4.5% to close at $128.67 on Tuesday.
- On May 29, Chewy reported better-than-expected first-quarter 2024 results. Chewy also announced that its Board of Directors authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock. The company's stock jumped around 39% over the past month and has a 52-week high is $40.78.
- RSI Value: 75.33
- CHWY Price Action: Shares of Chewy fell 0.1% to close at $22.23 on Wednesday.
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