Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of March 22, 2024, five 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.
Travel + Leisure Co. (NYSE: TNL)
- On March 21, Travel + Leisure completed $350 million term securitization. The company’s stock gained around 5% over the past five days and has a 52-week high of $47.68 .
- RSI Value: 73.66
- TNL Price Action: Shares of Travel + Leisure closed at $47.02 on Thursday.
- On March 20, J. Jill reported fourth-quarter FY23 sales growth of 1.2% year-on-year to $149.45 million, beating the analyst consensus estimate of $147.40 million. “This performance is once again a testament to the execution of our disciplined operating model which has continued to support the healthy margin profile and strong cash generation of the business,” said President and CEO Claire Spofford. The company’s stock gained around 19% over the past month and has a 52-week high of $32.26.
- RSI Value: 70.91
- JILL Price Action: Shares of J.Jill gained 10.5% to close at $29.26 on Thursday.
- On March 14, Despegar.com reported mixed fourth-quarter 2023 results, with sales beating estimates.. The company’s stock gained around 36% over the past month and has a 52-week high of $12.10.
- RSI Value: 77.27
- DESP Price Action: Shares of Despegar.com gained 0.9% to close at $11.90 on Thursday.
- On March 19, Oppenheimer analyst Noah Kaye initiated coverage on Modine Manufacturing with an Outperform rating and announced a price target of $105. The company’s stock jumped around 21% over the past five days and has a 52-week high is $106.01.
- RSI Value: 76.68
- MOD Price Action: Shares of Modine Manufacturing gained 3.7% to close at $102.70 on Thursday.
- On March 21, Oppenheimer analyst Tyler Batory maintained Toll Brothers with an Outperform and raised the price target from $141 to $157. The company’s stock jumped around 15% over the past month and has a 52-week high of $128.10.
- RSI Value: 71.84
- TOL Price Action: Shares of Toll Brothers gained 2.3% to close at $126.53 on Thursday.
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