As of Jan. 3, 2025, two 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.
Garrett Motion Inc (NASDAQ:GTX)
- On Dec. 5, Garrett Motion revealed its long-term capital allocation plan which includes a $50 million annual dividend and $250 million share buyback program. "Garrett continues to demonstrate industry-leading free cash flow generation. Initiating a dividend and launching a new repurchase program will result in a progressive dividend yield over time and underscores our commitment to delivering value to shareholders while strategically investing in technologies that drive future growth across both our turbo and zero-emission offerings," said Garrett President and CEO, Olivier Rabiller. The company's stock surged around 6% over the past month and has a 52-week high of $10.16.
- RSI Value: 72.3
- GTX Price Action: Shares of Garrett Motion fell 1.3% to close at $8.91 on Thursday.
Urban Outfitters Inc (NASDAQ:URBN)
- On Nov. 26, the company said third-quarter net sales rose 6.3% to a record $1.36 billion and earnings came in at $1.10 per share. "We are pleased to announce record third quarter sales and earnings, both of which exceeded our expectations. These results were driven by outperformance across all three business segments – Retail, Subscription and Wholesale," said Richard A. Hayne, Chief Executive Officer. "Additionally, we're optimistic about the outlook for Holiday demand and believe total comparable sales could be similar to our third quarter results." The company's stock gained around 12% over the past month and has a 52-week high of $57.00.
- RSI Value: 73.8
- URBN Price Action: Shares of Urban Outfitters gained 3.6% to close at $56.84 on Thursday.
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