Top 5 Consumer Stocks That May Implode This Quarter

The most overbought stocks in the consumer discretionary 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.

BJ's Restaurants, Inc. BJRI

• Wedbush recently upgraded BJ's Restaurants from Neutral to Outperform and maintained a $36 price target. The company’s stock has a 52-week high of $36.14 .
• RSI Value: 73.54
• BJRI Price Action: Shares of BJ's Restaurants gained 7.5% to close at $31.34 on Friday.

Melco Resorts & Entertainment Limited MLCO

• Melco announced a privately-negotiated share repurchase agreement with Melco International Development Limited and Melco Leisure Under which co. will repurchase $169,836,073.04 of shares. The company’s stock has a 52-week high of $14.46.
• RSI Value: 75.68
• MLCO Price Action: Shares of Melco Resorts gained 3.7% to close at $14.39 on Friday.

Amazon.com, Inc. AMZN

• Amazon launched an Anti-Counterfeiting Exchange (ACX) to improve its risk evaluation systems for a safer online shopping experience. The company has a 52-week high of $146.57.
• RSI Value: 70.06
• AMZN Price Action: Shares of Amazon rose 3% to close at $106.96 on Friday.

Las Vegas Sands Corp. LVS

• Las Vegas reported better-than-expected Q1 results. "While travel restrictions and reduced visitation continued to impact our financial performance during the quarter, a robust recovery in travel and tourism spending across our markets is now underway. We remain enthusiastic about the opportunity to welcome more guests back to our properties throughout 2023 and in the years ahead," said Robert G. Goldstein, chairman and chief executive officer. The company’s 52-week high is $63.49.
• RSI Value: 77.21
• LVS Price Action: Shares of Las Vegas Sands rose 2.5% to close at $63.05 on Friday.

KB Home KBH

• KB Home reported better-than-expected Q1 results. "We produced solid financial results in the first quarter, with diluted earnings per share that were in-line with the prior-year quarter, despite significantly more challenging housing market conditions," said Jeffrey Mezger, Chairman, President and Chief Executive Officer. The company has a 52-week high of $42.61.
• RSI Value: 70.24
• KBH Price Action: Shares of KB Home rose 0.4% to settle at $41.69 on Friday.

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