Top 5 Risk Off Stocks That Are Ticking Portfolio Bombs

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.

Lifeway Foods, Inc. LWAY

• Lifeway Foods reported a year-over-year increase in second-quarter EPS results and better-than-expected sales results. The company’s stock has a 52-week high of $11.30. .
• RSI Value: 77.71
• LWAY Price Action: Shares of Lifeway Foods fell 1.1% to close at $10.70 on Wednesday.

Spectrum Brands Holdings, Inc. SPB

• Spectrum Brands Holdings reported a second-quarter 2023 sales decline of 10.1% year-on-year to $735.5 million, missing the analyst consensus estimate of $780.97 million. The company’s stock has a 52-week high of $84.09.
• RSI Value: 73.03
• SPB Price Action: Shares of Spectrum Brands rose 0.8% to close at $83.79 on Wednesday.

Sovos Brands, Inc. SOVO

• Campbell Soup announced it would acquire Sovos Brands for $23 per share in cash. The company has a 52-week high of $22.65.
• RSI Value: 73.20
• SOVO Price Action: Shares of Sovos Brands fell 0.6% to close at $22.40 on Wednesday.

Celsius Holdings, Inc. CELH

• Celsius reported better-than-expected second-quarter financial results. The company’s 52-week high is $194.35.
• RSI Value: 74.66
• CELH Price Action: Shares of Celsius Holdings gained 3.3% to close at $194.01 on Wednesday.

Thorne HealthTech, Inc. THRN

• Thorne HealthTech entered into a definitive agreement to be acquired by L Catterton, a global consumer-focused investment firm, at $10.20 per share in cash. The company has a 52-week high of $10.16.
• RSI Value: 74.50
• THRN Price Action: Shares of Thorne HealthTech rose 0.3% to settle at $10.12 on Wednesday.

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