Top 3 Consumer Stocks That May Keep You Up At Night This Quarter

By Avi Kapoor•

As of Nov. 5, 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.

Yum China Holdings Inc (NYSE:YUMC)

  • On Nov. 4, Yum China reported better-than-expected third-quarter EPS and revenues. Revenue increased 5% year over year to $3.07 billion, beating the consensus of $3.05 billion. Joey Wat, CEO of Yum China, said, “By optimizing our delivery strategy, we have captured more smaller order transactions and gained market share on aggregator platforms. Our breakthrough business models, side-by-side KCOFFEE Cafes and Pizza Hut WOW, enabled us to broaden our addressable market and capture new customer demand, reaching 500 and 150 stores, respectively.” The company’s stock gained around 8% over the past five days and has a 52-week high of $51.68.
  • RSI Value: 76.25                              
  • YUMC Price Action: Shares of Yum China gained 7.2% to close at $48.30 on Monday.

Trip.com Group Ltd (NASDAQ:TCOM)

  • On Nov. 4, Bernstein initiated coverage on the stock with an Outperform rating and announced a price target of $85. The company’s stock gained around 3% over the past five days and has a 52-week high of $69.67.
  • RSI Value: 70.45
  • TCOM Price Action: Shares of Trip.com gained 3.1% to close at $67.24 on Monday.

Everi Holdings Inc (NYSE:EVRI)

  • On July 26, Everi entered an agreement to be acquired by funds managed by Apollo affiliates for $14.25 per share in cash. The company’s stock gained around 1% over the past month and has a 52-week high of $13.40.
  • RSI Value: 80.82
  • EVRI Price Action: Shares of Everi Holdings fell 0.1% to close at $13.32 on Monday.

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