The consumer sector is a wild beast, and investors are getting a front-row view of its untamed nature. As of Feb. 23, 2024, momentum traders are staring at four stocks that could be sounding an alarm. These stocks are showing signs of being stretched to their limits, raising concerns among those who rely on momentum to guide their trading strategies.
The RSI, a tool used to gauge momentum, indicates whether a stock is overbought or oversold. When the RSI climbs above 70, it signals that a stock may be overextended and due for a pullback. These fluctuations provide traders with insights into short-term performance. Now, let’s dive into the latest overbought contenders in the consumer sector.
Codere Online Luxembourg, S.A. CDRO
- Codere Online is creating a stir as it gears up to unveil its financial results for the fourth quarter and full year of 2023 on Feb. 29, 2024. With a staggering 56% surge over the last five days, this stock is perched at a 52-week high of $7.17.
- RSI Value: 89.88
- CDRO Price Action: Codere Online Luxembourg’s shares climbed 18.5% to reach $6.99 at the close of trading on Thursday.
Ralph Lauren Corporation RL
- Ralph Lauren Corporation has been turning heads with its third-quarter earnings report. The fashion giant surpassed Wall Street expectations with adjusted earnings per share of $4.17. Looking ahead to fiscal 2024, the company anticipates revenue growth in the low-single digits on a constant currency basis, now hovering around 2%, up from the previous 1%-2%. The stock has surged by 34% over the past month and is flirting with a 52-week high of $187.87.
- RSI Value: 85.90
- RL Price Action: Ralph Lauren’s shares edged up by 1.7% to conclude the day at $187.13 on Thursday.
Trip.com Group Limited TCOM
- Trip.com Group Limited is making waves with its robust fourth-quarter financial performance. The travel company has seen its stock skyrocket by 10% in the past five days, with a 52-week high of $45.10 in its sights.
- RSI Value: 83.99
- TCOM Price Action: Trip.com Group’s shares surged by 6.6% to close at $44.67 on Thursday.
Tapestry, Inc. TPR
- Tapestry, Inc. is not one to be left behind, reporting stellar second-quarter results and upping its FY24 adjusted EPS guidance above forecasts. The company intends to distribute around $325 million to shareholders through dividends this fiscal year, amounting to an annual dividend rate of $1.40 per share, a 17% boost from the previous year. The stock has leaped by 27% in the last month, approaching a 52-week high of $47.92.
- RSI Value: 79.54
- TPR Price Action: Tapestry’s shares saw a 1.8% rise, settling at $47.80 at the close of trading on Thursday.
Read More: Investor Optimism Improves Further; S&P 500 Settles At Record High
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