Top 3 Consumer Stocks That Could Sink Your Portfolio In Q4

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.

E-Home Household Service Holdings Limited EJH

• The company’s shares jumped 80% over the past month. The company’s stock has a 52-week high of $150.00. .
• RSI Value: 80.28
• EJH Price Action: Shares of E-Home Household Service fell 0.5% to close at $1.98 on Monday.

Chico's FAS, Inc. CHS

• Chico’s FAS announced a definitive agreement to be acquired by private equity firm Sycamore Partners for $1 billion. The company’s stock has a 52-week high of $7.53.
• RSI Value: 78.91
• CHS Price Action: Shares of Chico's FAS fell 0.1% to close at $7.48 on Monday.

Stride, Inc. LRN

• Stride reported a year-over-year increase in first-quarter EPS results and better-than-expected sales results. The company also issued FY24 revenue guidance above estimates. The company has a 52-week high of $55.74.
• RSI Value: 77.76
• LRN Price Action: Shares of Stride gained 1.5% to close at $55.24 on Monday.

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