Top 5 Consumer Staples Stocks That May Crash In Q2

The most overbought stocks in the consumer staples sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

Sovos Brands, Inc. SOVO

• Sovos Brands reported better-than-expected Q4 results and issued strong FY23 guidance. The company’s stock has a 52-week high of $17.92.
• RSI Value: 79.73
• SOVO Price Action: Shares of Sovos Brands fell 1.3% to close at $17.55 on Tuesday.

The Vita Coco Company, Inc. COCO

• Vita Coco posted a loss for the fourth quarter. Michael Kirban, the Company's Co-founder and Executive Chairman, stated, “I am very proud of our team's performance during a challenging supply chain environment in 2022, and I'm very excited that in early 2023 we are starting to see those challenges ease.” The company’s stock has a 52-week high of $22.37.
• RSI Value: 76.37
• COCO Price Action: Shares of Vita Coco Company fell 1.1% to close at $21.67 on Tuesday.

McCormick & Company, Incorporated MKC

• McCormick reported first-quarter FY23 sales growth of 3% year-on-year to $1.57 billion, beating the consensus of $1.54 billion. The company has a 52-week high of $105.19.
• RSI Value: 72.55
• MKC Price Action: Shares of McCormick rose 1% to close at $86.11 on Tuesday.

The Hershey Company HSY

• Morgan Stanley maintained Hershey with an Equal-Weight and raised the price target from $246 to $256. The company’s 52-week high is $261.17.
• RSI Value: 75.28
• HSY Price Action: Shares of Hershey rose 0.2% to close at $259.14 on Tuesday.

Church & Dwight Co., Inc. CHD

• Church & Dwight reported better-than-expected Q4 adjusted EPS and sales results and raised its quarterly cash dividend. Matthew Farrell, Chief Executive Officer, commented, "I would like to recognize all Church & Dwight employees around the world for their dedication to helping us navigate another challenging year. Our people have managed through a volatile environment and have made significant improvements in our supply chain resiliency." The company has a 52-week high of $105.28.
• RSI Value: 77.64
• CHD Price Action: Shares of Church & Dwight rose 0.1% to settle at $90.59 on Tuesday.

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