Top 5 Consumer Stocks That Should Keep You Up At Night

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.

RH RH

• RH recently lowered FY23 adjusted operating margin guidance. The company’s stock has a 52-week high of $380.30. .
• RSI Value: 77.61
• RH Price Action: Shares of RH fell 3.2% to close at $364.99 on Monday.

Newegg Commerce, Inc. NEGG

• Newegg recently highlighted use of AI in online shopping experience. The company’s stock has a 52-week high of $4.75.
• RSI Value: 81.37
• NEGG Price Action: Shares of Newegg Commerce gained 13.3% to close at $1.66 on Monday.

Modine Manufacturing Company MOD

• Modine Manufacturing acquired Napps Technology, a manufacturer of air- and water-cooled chillers, condensing units and heat pumps for the K-12 school market and other similar applications. "Napps Technology's modular, heat pump chillers perfectly complement our existing portfolio of indoor air quality technologies and equip us to meet a broader range of customer needs in the K-12 school market and beyond," said Jake Feldman, Vice President and General Manager of Modine's Indoor Air Quality business. The company has a 52-week high of $37.98.
• RSI Value: 74.68
• MOD Price Action: Shares of Modine Manufacturing fell 1.3% to close at $37.19 on Monday.

Landsea Homes Corporation LSEA

• Barclays recently maintained Landsea Homes with an Equal-Weight and raised the price target from $8 to $9. The company’s 52-week high is $10.75.
• RSI Value: 73.01
• LSEA Price Action: Shares of Landsea Homes fell 1.3% to close at $10.25 on Monday.

Ermenegildo Zegna N.V. ZGN

• Ermenegildo Zegna appointed Lelio Gavazza to the newly created position of CEO, TOM FORD FASHION, effective Sept. 18, 2023. The company has a 52-week high of $14.72.
• RSI Value: 75.43
• ZGN Price Action: Shares of Ermenegildo Zegna fell 1.2% to settle at $14.39 on Monday.

Read More: Martin Midstream Partners And 2 Other Penny Stocks Insiders Are Buying