Top 3 Consumer Stocks That May Collapse In March

As of March 3, 2025, 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.

Yum! Brands Inc YUM

• On Feb. 6, Yum! Brands reported better-than-expected fourth-quarter adjusted EPS results. Also the company increased its quarterly dividend. David Gibbs, CEO, said “2024 was marked with exceptional core operating profit growth given the complex consumer environment. 2024 again demonstrates the resilience of our business model and the agility of our world-class teams. Our twin growth engines remain strong with Taco Bell U.S. delivering same-store sales growth of 5% in the fourth quarter, meaningfully outpacing the industry, and KFC International delivering its second consecutive year with over 2,000 net new units. Our advantaged brand position, together with our industry-leading talent, franchisees, and technology, position us for another excellent year in 2025.” The company's stock gained around 19% over the past month and has a 52-week high of $156.56.
• RSI Value: 73.6                                
• YUM Price Action: Shares of Yum! Brands gained 1.7% to close at $156.37 on Friday.

Light & Wonder Inc LNW

• On Feb. 25, Light & Wonder posted better-than-expected quarterly earnings. Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “We ended a strong 2024 with continued double-digit revenue and earnings growth for the year." The company's stock gained around 31% over the past month and has a 52-week high of $115.00.
• RSI Value: 70.7
• LNW Price Action: Shares of Light & Wonder gained 0.8% to close at $111.48 on Friday.

ADT Inc ADT

• On Feb. 27, ADT reported better-than-expected fourth-quarter financial results and issued FY25 revenue guidance above estimates. Additionally, the company approved a $500 million share buyback program. “We delivered strong 2024 results including a record-high recurring monthly revenue balance, record customer retention, and very strong cash generation. All delivered while continuing to invest in ADT’s future which includes the launch of our proprietary ADT+ platform enabling unique and differentiated customer offerings such as Trusted Neighbor. Our successful 2024 performance is a testament to the dedication of our nearly 13,000 employees and approximately 140 dealer partners who are committed to serving our customers,” said ADT Chairman, President and CEO, Jim DeVries. The company's stock gained around 11% over the past five days and has a 52-week high of $8.39.
• RSI Value: 70.4
• ADT Price Action: Shares of ADT gained 0.9% to close at $8.19 on Friday.

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