Top 3 Defensive Stocks That May Crash This Month

As of Nov. 6, 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.

US Foods Holding Corp USFD

• US Foods Holding will host a live conference call and webcast to discuss third quarter results on Thursday, Nov. 7. The company's stock gained around 4% over the past month and has a 52-week high of $63.62.
• RSI Value: 72.87                              
• USFD Price Action: Shares of US Foods gained 2.2% to close at $63.12 on Tuesday.

Fresh Del Monte Produce Inc FDP

• On Oct. 31, Fresh Del Monte Produce reported better-than-expected third-quarter financial results. “We are pleased to report strong performance in the third quarter. Our strategic focus on high-margin, value-added products continues to deliver positive results, demonstrating the strength of our product innovations and our commitment to driving long-term profitability and value for our shareholders,” said Fresh Del Monte Chairman and CEO Mohammad Abu-Ghazaleh. ” The company's stock gained around 15% over the past five days and has a 52-week high of $33.60.
• RSI Value: 77.15
• FDP Price Action: Shares of Fresh Del Monte Produce gained 0.9% to close at $33.32 on Tuesday.

Sprouts Farmers Market Inc SFM

• On Oct. 30, Sprouts Farmers Market reported better-than-expected third-quarter financial results and issued fourth-quarter adjusted EPS guidance above estimates. “The third quarter was another exceptional performance by our Sprouts team,” said Jack Sinclair, chief executive officer of Sprouts Farmers Market. “We are driving robust traffic growth and continue to execute at a very high level. We remain confident in our long-term growth potential.” The company's stock jumped around 20% over the past month and has a 52-week high is $136.23.
• RSI Value: 89.25
• SFM Price Action: Shares of Sprouts Farmers Market gained 3.3% to close at $136.09 on Tuesday.

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