As of Jan. 16, 2025, two stocks in the consumer staples 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.
Chefs’ Warehouse Inc CHEF
- On Jan. 13, Chefs’ Warehouse announced FY25 outlook, seeing net sales of $3.94 billion to $4.04 billion and adjusted EBITDA of $233 million to $246 million. The company's stock surged around 7% over the past month and has a 52-week high of $53.31.
- RSI Value: 77.3
- CHEF Price Action: Shares of Chefs’ Warehouse gained 1.9% to close at $52.59 on Wednesday.
Walgreens Boots Alliance Inc WBA
- On Jan. 10, Walgreens Boots Alliance reported better-than-expected quarterly financial results. Walgreens Boots Alliance maintains fiscal 2025 adjusted EPS guidance of $1.40 – $1.80 versus the consensus of $1.52. The company expects growth in U.S. Healthcare and International offset by pressure in U.S. Retail Pharmacy largely driven by weaker retail front end performance. The company's stock gained around 32% over the past five days and has a 52-week high of $23.76.
- RSI Value: 74.5
- WBA Price Action: Shares of Walgreens gained 2.4% to close at $12.53 on Wednesday.
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