Top 3 Defensive Stocks That May Collapse In February

As of Feb. 26, 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.

Freshpet, Inc. FRPT

On Feb. 26, Freshpet posted upbeat quarterly earnings. The company’s stock gained around 3% over the past five days and has a 52-week high of $93.12 .
RSI Value: 71.14
FRPT Price Action: Shares of Freshpet gained 1.9% to close at $92.01 on Friday.

Walmart Inc. WMT

On Feb. 20, Walmart reported fourth-quarter FY24 net sales growth of 5.7% year-over-year to $173.39 billion, beating the consensus of $170.71 billion. Adjusted EPS was $1.80, beating the consensus of $1.65. The stock price gained after the results. The company’s stock gained around 34% over the past month and has a 52-week high of $177.65.
RSI Value: 73.11
WMT Price Action: Shares of Walmart rose 0.1% to close at $175.56 on Friday.

Costco Wholesale Corporation COST

On Feb. 7, Costco reported January net sales of $22.08 billion, up 4.5% year over year. The company’s stock gained around 7% over the past month and has a 52-week high of $742.51.
RSI Value: 74.13
COST Price Action: Shares of Costco gained 0.5% to close at $737.93 on Friday.