As of May 16, 2025, 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.
On April 28, Leggett & Platt reported better-than-expected first-quarter EPS results and raised its FY25 EPS guidance. President and CEO Karl Glassman commented, “We are pleased to report better than anticipated first quarter earnings. Our earnings improvement is a testament to the excellent execution of our restructuring plan and operational efficiency improvement initiatives, as well as disciplined cost management.” The company’s stock jumped around 46% over the past month and has a 52-week high of $14.24.
RSI Value: 70.2
LEG Price Action: Shares of Leggett & Platt gained 0.8% to close at $9.55 on Thursday.
Edge Stock Ratings: 23.09 Momentum score with Value at 14.19.
On May 14, Fossil Group reported a year-over-year increase in first-quarter adjusted EPS results. “We are pleased to deliver another quarter of progress under our turnaround plan,” said Franco Fogliato, CEO. The company’s stock gained around 59% over the past month and has a 52-week high of $2.61.
RSI Value: 80.2
FOSL Price Action: Shares of Fossil gained 15.9% to close at $1.46 on Thursday.
On May 1, Laureate Education reported better-than-expected first-quarter financial results and raised its FY25 sales guidance. The company’s stock gained around 17% over the past month and has a 52-week high of $23.61.
RSI Value: 72.5
LAUR Price Action: Shares of Laureate Education gained 0.7% to close at $22.64 on Thursday.
