Benzinga - by Lisa Levin, Benzinga Editor.
As of Nov. 30, 2023, four 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.
Anheuser-Busch InBev SA/NV (NYSE: BUD)
- On Oct. 31, Anheuser-Busch reported third-quarter FY23 sales growth of 5% year-on-year to $15.57 billion, missing the analyst consensus estimate of $15.73 billion. "The strength of our global footprint delivered another quarter of top- and bottom-line growth. Revenue increased by 5.0% with an EBITDA increase of 4.1%. We continue to invest in our strategic priorities for the long-term," said Michel Doukeris, CEO, AB InBev. The company’s stock jumped around 10% over the past month and has a 52-week high of $67.09. .
- RSI Value: 74.03
- BUD Price Action: Shares of Anheuser-Busch fell 0.3% to close at $62.61 on Wednesday.
- On Nov. 27, Kraft Heinz said its Board of Directors approved a repurchase program for up to $3 billion of shares through Dec. 26, 2026. "A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity," said CEO and Board Chair Miguel Patricio. The company’s stock gained around 12% over the past month and has a 52-week high of $42.80.
- RSI Value: 72.09
- KHC Price Action: Shares of Kraft Heinz fell 0.1% to close at $35.08 on Wednesday.
- On Nov. 15, Target reported better-than-expected third-quarter financial results. "This profit performance benefited from our team's commitment to efficiency and disciplined inventory management, and I'd like to thank them for their tireless efforts," said Brian Cornell, chairman and CEO of Target. The company’s stock jumped around 19% over the prior month and has a 52-week high of $181.70.
- RSI Value: 72.90
- TGT Price Action: Shares of Target fell 0.3% to close at $131.32 on Wednesday.
- On Nov. 13, BRF reported a Q3 loss of 5 cents per share. The company’s stock gained around 5% over past five days and has a 52-week high is $3.09.
- RSI Value: 74.07
- BRFS Price Action: Shares of BRF rose 0.7% to close at $3.03 on Wednesday.
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