Top 3 Defensive Stocks That May Implode In Q1

As of Jan. 31, 2025, 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.

British American Tobacco PLC BTI

On Jan. 27, UBS analyst Faham Baig upgraded British American Tobacco from Neutral to Buy. The company's stock surged around 9% over the past month and has a 52-week high of $39.76.
RSI Value: 75
BTI Price Action: Shares of British American Tobacco gained 1.1% to close at $39.68 on Thursday.

Estee Lauder Companies Inc EL

On Jan. 30, Wells Fargo analyst Christopher Carey maintained Estee Lauder with an Equal-Weight rating and raised the price target from $74 to $80. The company's stock gained around 14% over the past month and has a 52-week high of $62.29.
RSI Value: 77.1
EL Price Action: Shares of Estee Lauder gained 3.9% to close at $85.48 on Thursday.

Turning Point Brands Inc TPB

On Jan. 10, Roth MKM analyst Scott Fortune reiterated Turning Point Brands with a Buy and maintained a $70 price target. The company's stock gained around 12% over the past five days and has a 52-week high of $66.18.
RSI Value: 73.1
TPB Price Action: Shares of Turning Point Brands gained 5.3% to close at $63.00 on Thursday.

Read This Next: