In the consumer discretionary sector, there are certain stocks that have become overbought, presenting an opportunity to go short on these overvalued companies. Overbought stocks are those whose Relative Strength Index (RSI) is above 70, indicating a potentially unsustainable increase in stock price.
E-Home Household Service Holdings Limited (NASDAQ: EJH)
- The company’s shares have surged by 80% in the past month.
- Its stock has reached a 52-week high of $150.00.
- RSI Value: 80.28
- Recent price action: Shares of E-Home Household Service fell 0.5% to close at $1.98 on Monday.
Chico’s FAS, Inc. (NYSE: CHS)
- Chico’s FAS has announced a definitive agreement to be acquired by private equity firm Sycamore Partners for $1 billion.
- The company’s stock has a 52-week high of $7.53.
- RSI Value: 78.91
- Recent price action: Shares of Chico’s FAS fell 0.1% to close at $7.48 on Monday.
Stride, Inc. (NYSE: LRN)
- Stride has reported a year-over-year increase in first-quarter EPS results and better-than-expected sales results.
- The company has issued FY24 revenue guidance above estimates.
- Its stock has a 52-week high of $55.74.
- RSI Value: 77.76
- Recent price action: Shares of Stride gained 1.5% to close at $55.24 on Monday.
It is important to keep an eye on these stocks as they may be overvalued and pose a risk to your portfolio in the fourth quarter. Stay informed and stay ahead in the market.
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