Benzinga - The most overbought stocks in the consumer staples sector presents an opportunity to go short on these overvalued 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 overbought when the RSI is above 70.
Here’s the latest list of major overbought players in this sector.
Mondelez International, Inc. (NASDAQ: MDLZ)
- Mondelez reported better-than-expected quarterly earnings. The company’s stock has a 52-week high of $70.06 .
- RSI Value: 71.55
- MDLZ Price Action: Shares of Mondelez International rose 0.6% to close at $69.59 on Tuesday.
- BellRing Brands reported better-than-expected Q1 adjusted EPS and sales results. “We are pleased with our strong first quarter performance, which came in ahead of our expectations. Our shake production came in slightly higher than we forecasted, improving both internal and customer trade inventory levels and driving Premier Protein volumes back to growth. Premier Protein and Dymatize saw healthy retail consumption growth in the quarter, which has continued into January,” said Darcy H. Davenport, President and Chief Executive Officer of BellRing. “ The company’s stock has a 52-week high of $33.77.
- RSI Value: 70.94
- BRBR Price Action: Shares of BellRing Brands gained 0.7% to close at $33.45 on Tuesday.
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- Vita Coco posted a loss for the fourth quarter. Michael Kirban, the Company's Co-founder and Executive Chairman, stated, “I am very proud of our team's performance during a challenging supply chain environment in 2022, and I'm very excited that in early 2023 we are starting to see those challenges ease.” The company has a 52-week high of $20.29.
- RSI Value: 80.45
- COCO Price Action: Shares of Vita Coco Company rose 1% to close at $20.04 on Tuesday.
- Sovos Brands reported better-than-expected Q4 results and issued strong FY23 guidance. “I am pleased to report an exceptional finish to the year as Sovos Brands generated nearly 30% Organic Net Sales2 and 40% Adjusted EBITDA1 growth in the fourth quarter,” said Todd Lachman, President and Chief Executive Officer. The company’s 52-week high is $16.89.
- RSI Value: 80.67
- SOVO Price Action: Shares of Sovos Brands rose 1.2% to close at $16.70 on Tuesday.
- The company’s net sales rose 11.2% in the fourth quarter. The company has a 52-week high of $62.97.
- RSI Value: 72.95
- IBA Price Action: Shares of Industrias Bachoco rose 2.8% to settle at $62.54 on Tuesday.
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