Top 4 Consumer Stocks That May Collapse This Month

As of Jan. 16, 2024, four stocks in the consumer discretionary 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.

Flexsteel Industries, Inc. FLXS

• On Jan. 11, Flexsteel Industries reported strong preliminary results for the second quarter. The company said it sees preliminary earnings of 57 cents per share, versus analysts’ estimates of 27 cents per share. The company’s stock jumped around 25% over the past five days and has a 52-week high of $24.96 .
• RSI Value: 77.45
• FLXS Price Action: Shares of Flexsteel Industries jumped 29.2% to close at $23.28 on Friday.

Educational Development Corporation EDUC

• On Jan. 11, 2023, Educational Development posted better-than-expected quarterly earnings. Per Mr. Craig White, President and CEO of Educational Development Corporation, "Although our PaperPie division's third quarter net revenues decreased $9.8 million from the third quarter of last year, primarily due to the decrease in active Brand Partners, net revenues did tick up 59% sequentially from $10.6 million in the second quarter of fiscal 2024." The company’s stock gained around 45% over the past month and has a 52-week high of $4.00.
• RSI Value: 83.63
• EDUC Price Action: Shares of Educational Development jumped 15.9% to close at $1.42 on Friday.

Barnes & Noble Education, Inc. BNED

• On Jan. 12, Needham analyst Ryan MacDonald downgraded Barnes & Noble Education from Buy to Hold. The company’s stock has a 52-week high of $2.52.
• RSI Value: 76.30
• BNED Price Action: Shares of Barnes & Noble Education rose 12.4% to close at $1.18 on Friday.

Vince Holding Corp. VNCE

• On Dec. 6, Vince Holding posted a profit for the third quarter. Jack Schwefel, Chief Executive Officer of VNCE said, "We are pleased with our third quarter performance and the sequential improvement we delivered compared to the prior quarter despite incurring the first full period of royalty expenses." The company’s stock jumped around 215% over the past month and has a 52-week high is $8.48.
• RSI Value: 72.64
• VNCE Price Action: Shares of Vince Holding fell 0.5% to close at $3.75 on Friday.

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