Top 4 Defensive Stocks That May Fall Off A Cliff In December

As of Dec. 15, 2023, four stocks in the consumer staples sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

Here’s the latest list of major overbought players in this sector.

Universal Corporation UVV

• On Nov. 2, Universal Corporation reported a year-over-year increase in second-quarter adjusted EPS results. George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal, stated, "Our fiscal year 2024 is developing very well with operating income for the six months and quarter ended September 30, 2023, up 30% and 46%, respectively, compared to the six months and quarter ended September 30, 2022." The company’s stock jumped around 18% over the past month and has a 52-week high of $64.44 .
• RSI Value: 83.68
• UVV Price Action: Shares of Universal Corporation gained 2.8% to close at $63.42 on Thursday.

e.l.f. Beauty, Inc. ELF

• On Nov. 1, e.l.f. Beauty reported better-than-expected second-quarter financial results and raised FY23 adjusted EPS and net sales guidance above estimates. The company’s stock gained around 13% over the past five days and has a 52-week high of $146.95.
• RSI Value: 82.40
• ELF Price Action: Shares of e.l.f. Beauty gained 1% to close at $143.21 on Thursday.

Freshpet, Inc. FRPT

• On Nov. 6, Freshpet shares reported better-than-expected third-quarter financial results and raised FY23 guidance. The company’s stock jumped around 22% over the past month and has a 52-week high of $86.48.
• RSI Value: 85.78
• FRPT Price Action: Shares of Freshpet gained 0.5% to close at $84.27 on Thursday.

Coca-Cola Consolidated, Inc. COKE

• On Nov. 1, Coca-Cola Consolidated posted an increase in quarterly sales results. The company’s stock gained around 24% over the past month and has a 52-week high is $864.42.
• RSI Value: 89.45
• COKE Price Action: Shares of Coca-Cola Consolidated gained 0.5% to close at $859.72 on Thursday.

Read More: Robinhood, Verizon And 2 Other Stocks Insiders Are Selling