Top 5 Consumer Stocks That May Explode In May

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.

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 oversold when the RSI is below 30.

Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.

Foot Locker, Inc. FL

• Foot Locker reported worse-than-expected first-quarter results and lowered its FY23 guidance. "Coming off the recent launch of our Lace Up Strategy at our Investor Day in March, we are making early progress in building a strong foundation to return to sustainable growth beyond this year," said Mary Dillon, President and Chief Executive Officer. The company’s stock has a 52-week low of $23.85 .
• RSI Value: 26.01
• FL Price Action: Shares of Foot Locker fell 27.2% to close at $30.21 on Friday.

Noodles & Company NDLS

• Noodles & Company announced CFO Carl Lukach will depart the company. Stephens & Co analyst Joshua Long downgraded Noodles & Co to Equal-Weight from Overweight at a reduced price target of $5 from $7. The company’s stock has a 52-week low of $3.21.
• RSI Value: 21.81
• NDLS Price Action: Shares of Noodles & Company fell 14.4% to close at $3.26 on Friday.

Mullen Automotive, Inc. MULN

• Mullen Automotive reported second-quarter net loss attributable to shareholders of $114.9 million. The company’s stock has a 52-week low of $1.01.
• RSI Value: 25.31
• MULN Price Action: Shares of Mullen Automotive dropped 10.1% to close at $1.07 on Friday.

The Container Store Group, Inc. TCS

• Container Store Group posted upbeat earnings for its fourth quarter. Satish Malhotra, Chief Executive Officer and President of The Container Store, commented, "Excluding the impact of goodwill impairment, we ended the year with fourth quarter performance in line with our expectations, especially in light of the continued macro-related headwinds that have negatively impacted customer traffic trends." The company’s 52-week low is $2.21.
• RSI Value: 21.49
• TCS Price Action: Shares of Container Store Group fell 10.8% to close at $2.24 on Friday.

Lordstown Motors Corp. RIDE

• Lordstown Motors said it has substantial doubt regarding the ability to continue as a going concern and may need to curtail or cease operations and seek bankruptcy protection if uncertainties are not resolved. The company has a 52-week low of $0.2510.
• RSI Value: 27.54
• RIDE Price Action: Shares of Lordstown Motors dropped 9.4% to close at $0.2746 on Friday.

Read More: Alphabet, VeriSign And 2 Other Stocks Insiders Are Selling