Top 5 Defensive Stocks That May Plunge This Quarter

As of March 25, 2024, five 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.

Lifeway Foods, Inc. LWAY

• On March 20, Lifeway Foods posted better-than-expected quarterly results. The company’s stock gained around 47% over the past five days and has a 52-week high of $17.33 .
• RSI Value: 80.63
• LWAY Price Action: Shares of Lifeway Foods closed at $47.02 on Thursday.

BBB Foods Inc. TBBB

• On March 12, Scotiabank analyst Hector Maya initiated coverage on BBB Foods with a Sector Outperform rating and announced a price target of $33. The company’s stock gained around 9% over the past five days and has a 52-week high of $23.82.
• RSI Value: 76.96
• TBBB Price Action: Shares of BBB Foods gained 3.3% to close at $23.54 on Friday.

Origin Agritech Limited SEED

• On March 20, Origin Agritech announced breakthrough in high-yield corn production through gene editing. The company’s stock gained around 24% over the past five days and has a 52-week high of $7.18.
• RSI Value: 70.38
• SEED Price Action: Shares of Origin Agritech gained 3.4% to close at $3.62 on Friday.

WK Kellogg Co KLG

• On Feb. 13, WK Kellog reported better-than-expected fourth-quarter revenue results and issued FY24 guidance. The company’s stock jumped around 10% over the past five days and has a 52-week high is $18.59.
• RSI Value: 86.62
• KLG Price Action: Shares of WK Kellogg gained 2.9% to close at $18.59 on Friday.

Tyson Foods, Inc. TSN

• On March 14, Cal-Maine Foods completed acquisition of assets from Tyson Foods, Inc. The company’s stock jumped around 4% over the past five days and has a 52-week high of $63.28.
• RSI Value: 71.79
• TSN Price Action: Shares of Tyson Foods fell 0.1% to close at $58.05 on Friday.

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