Top 4 Risk Off Stocks That May Collapse This Month

As of Jan. 3, 2024, three 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.

The Honest Company, Inc. HNST

On Dec. 4, The Honest Company expanded its partnership with Tinuiti, empowering continued growth and marketplace expansion. Erin Thoensen, Vice President, General Manager Baby + Home at The Honest Company, said, "As we grow in our partnership with Tinuiti we're excited to leverage our teams' shared expertise and the collaboration that we've established over the years. Together, we've been able to create efficiencies, while also identifying weaknesses, allowing us to navigate to creative and innovative solutions– and that has been a recipe for success." The company’s stock jumped around 32% over the past month and has a 52-week high of $3.75 .
RSI Value: 72.15
HNST Price Action: Shares of Honest Company fell 3.3% to close at $3.19 on Tuesday.

Turning Point Brands, Inc. TPB

On Nov. 8, Turning Point Brands reported its third quarter financial results on Wednesday for the three months ended Sept. 30, 2023, revealing a 10.2% year-over-year decrease in Zig-Zag products net sales to $46.8 million. The company’s stock gained around 7% over the past month and has a 52-week high of $26.69.
RSI Value: 71.40
TPB Price Action: Shares of Turning Point Brands fell 1% to close at $26.07 on Tuesday.

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 13% over the past month and has a 52-week high of $67.80.
RSI Value: 82.83
UVV Price Action: Shares of Universal fell 0.2% to close at $67.18 on Tuesday.

Mama's Creations, Inc. MAMA

On Dec. 19, Mama's Creations priced its underwritten public offering of 5.63 million shares by certain selling stockholders affiliated with Matthew Brown and Karen Wolf at $3.50 per share. The company’s stock gained around 25% over the past month and has a 52-week high is $5.00.
RSI Value: 71.46
MAMA Price Action: Shares of Mama's Creations gained 0.2% to close at $4.92 on Tuesday.