Top 3 Consumer Stocks That Are Ticking Portfolio Bombs

As of Nov. 19, 2024, three stocks in the consumer discretionary 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.

Brinker International, Inc. EAT

• On Oct. 30, Brinker International reported better-than-expected first-quarter financial results and raised its FY25 guidance above estimates. "Great food, with great service at industry leading value is driving strong Chili's sales and traffic," said President and CEO, Kevin Hochman. The company's stock gained around 31% over the past month and has a 52-week high of $123.66.
• RSI Value: 81.03                              
• EAT Price Action: Shares of Brinker gained 4.6% to close at $122.90 on Monday.

Service Corporation International SCI

• On Oct. 30, Service Corp International reported better-than-expected third-quarter adjusted EPS results. Tom Ryan, the Company’s Chairman and CEO, said, “Today we reported adjusted earnings per share of $0.79 and net cash provided by operating activities excluding special items of $269 million. We are excited to see the positive impact in funeral revenue from our new marketing agreement with our new preferred preneed insurance provider, which launched during the quarter.” The company's stock gained around 13% over the past month and has a 52-week high of $88.32.
• RSI Value: 71.81
• SCI Price Action: Shares of Service Corporation International gained 2.4% to close at $86.10 on Monday.

DoorDash Inc DASH

• On Oct. 30, DoorDash reported quarterly earnings of 38 cents per share, which beat the analyst consensus estimate of 22 cents. The company reported quarterly sales of $2.7 billion, which beat the analyst consensus estimate of $2.66 billion and is an increase over sales of $2.16 billion from the same period last year. The company's stock gained around 13% over the past month and has a 52-week high of $178.16.
• RSI Value: 74.05
• DASH Price Action: Shares of DoorDash gained 2% to close at $172.73 on Monday.

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