As of Sept. 18, 2024, three 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.
Sleep Number Corp (NASDAQ:SNBR)
- On Sept. 17, Piper Sandler analyst Peter Keith maintained Sleep Number with a Neutral and raised the price target from $12 to $16. The company's stock gained around 33% over the past five days and has a 52-week high of $27.12.
- RSI Value: 75.86
- SNBR Price Action: Shares of Sleep Number gained 8.2% to close at $18.98 on Tuesday.
Papa John's International Inc (NASDAQ:PZZA)
- On Sept. 9, Papa Johns named Kevin Vasconi as Chief Digital and Technology Officer. The company's stock gained around 13% over the past month and has a 52-week high of $78.67.
- RSI Value: 72.22
- PZZA Price Action: Shares of Papa John's gained 3.5% to close at $52.56 on Tuesday.
eBay Inc (NASDAQ:EBAY)
- On Sept. 5, Cantor Fitzgerald analyst Deepak Mathivanan initiated coverage on eBay with a Neutral rating and announced a price target of $62. The company's stock gained around 14% over the past month and has a 52-week high of $64.96.
- RSI Value: 82.85
- EBAY Price Action: Shares of eBay rose 0.8% to close at $64.88 on Tuesday.
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