Top 5 Defensive Stocks That May Implode 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.

PepsiCo, Inc. PEP

• PEP reported first-quarter FY23 sales growth of 10.2% year-on-year to $17.85 billion, beating the consensus of $17.22 billion. The company’s stock has a 52-week high of $193.95 .
• RSI Value: 72.70
• PEP Price Action: Shares of PepsiCo rose 0.6% to close at $193.38 on Thursday.

Mondelez International, Inc. MDLZ

• Mondelez reported better-than-expected Q1 results. “We delivered a strong start to the year, with double-digit net revenue and profit dollar growth in our first quarter, as we continued to execute against our long-term strategy. These results were driven by ongoing pricing execution to offset cost inflation and solid volume growth,” said Dirk Van de Put, Chairman and Chief Executive Officer. The company’s stock has a 52-week high of $78.59.
• RSI Value: 77.62
• MDLZ Price Action: Shares of Mondelez International rose 0.4% to close at $77.29 on Thursday.

Church & Dwight Co., Inc. CHD

• Church & Dwight reported first-quarter FY23 sales growth of 10.2% year-on-year to $1.43 billion, beating the consensus of $1.35 billion. Matthew Farrell, Chief Executive Officer, said, "Our Q1 results reflect the strength of our brands and our focus on execution. Consumer demand and improved case fill is resulting in strong revenue growth.” The company has a 52-week high of $99.56.
• RSI Value: 77.53
• CHD Price Action: Shares of Church & Dwight rose 0.2% to close at $97.66 on Thursday.

The Hershey Company HSY

• Hershey reported pricing of its offering of $350 million of 4.250% notes due 2028 and $400 million of 4.500% notes due 2033. The company’s 52-week high is $276.88.
• RSI Value: 74.86
• HSY Price Action: Shares of Hershey rose 0.2% to close at $274.64 on Thursday.

Molson Coors Beverage Company TAP

• Molson Coors Beverage reported better-than-expected Q1 financial results and issued guidance. Gavin Hattersley, President and Chief Executive Officer said, “Our results in the first quarter of 2023 demonstrate the strength of Molson Coors’ foundation across our portfolio of winning brands and business units. These results also reaffirm our belief that we’ve laid the right groundwork to continue growing sustainably in 2023 and in the future.” The company has a 52-week high of $66.67.
• RSI Value: 88.97
• TAP Price Action: Shares of Molson Coors Beverage rose 0.1% to settle at $65.01 on Thursday.

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