Top 3 Defensive Stocks That Are Ticking Portfolio Bombs

As of July 25, 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.

Unilever plc UL

• On July 25, Unilever reported quarterly adjusted earnings of $1.74 per share. This is a 16.27% increase over earnings of $1.50 per share from the same period last year. The company reported $33.48 billion in sales this quarter. The company's stock gained around 19% over the past six months and has a 52-week high of $58.62.
• RSI Value: 71.27                              
• UL Price Action: Shares of Unilever gained 0.04% to close at $56.54 on Wednesday.

British American Tobacco PLC BTI

• On July 25, British American Tobacco posted H1 adjusted EPS of 169.3p down from 181.6p year over year. The company's stock gained around 4% over the past month and has a 52-week high of $34.15.
• RSI Value: 77.99
• BTI Price Action: Shares of British American Tobacco fell slightly to close at $33.38 on Wednesday.

Altria Group Inc MO

• Altria Group will report its second-quarter and first-half business results on July 31. The company's stock gained around 6% over the past month and has a 52-week high of $49.92.
• RSI Value: 76.01
• MO Price Action: Shares of Altria closed at $49.42 on Wednesday.

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