Top 4 Risk Off Stocks That May Crash This Month

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.

Adecoagro S.A. AGRO

• Morgan Stanley recently upgraded the stock from Underweight to Equal-Weight and raised its price target from $9 to $13. The company’s stock has a 52-week high of $11.11. .
• RSI Value: 71.38
• AGRO Price Action: Shares of Adecoagro fell 1.8% to close at $10.90 on Tuesday.

Keurig Dr Pepper Inc. KDP

• Keurig Dr Pepper reported second-quarter FY23 sales growth of 6.6% year-on-year to $3.789 billion, beating the consensus of $3.690 billion. CEO and Chairman Bob Gamgort said, "On a consolidated basis, we continue to drive healthy growth while reinvesting in our business and are increasingly confident in our full year outlook, which now reflects even stronger underlying EPS results." The company’s stock has a 52-week high of $41.31.
• RSI Value: 72.70
• KDP Price Action: Shares of Keurig Dr Pepper gained 0.4% to close at $34.13 on Tuesday.

Constellation Brands, Inc. STZ

• Constellation Brands entered a cooperation and information sharing agreement with Elliott Management. The company has a 52-week high of $273.44.
• RSI Value: 73.22
• STZ Price Action: Shares of Constellation Brands fell 1% to close at $270.03 on Tuesday.

Calavo Growers, Inc. CVGW

• Calavo Growers reported worse-than-expected second-quarter financial results. “I am excited to be back at Calavo, a company that I helped to build and lead as CEO for 20 years and as Chairman for 28 years,” said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc. The company’s 52-week high is $45.50.
• RSI Value: 70.95
• CVGW Price Action: Shares of Calavo Growers rose 0.1% to close at $37.77 on Tuesday.

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