Top 5 Consumer Stocks That May Crash This Month

The most overbought stocks in the consumer discretionary sector presents an opportunity to go short on these overvalued 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 overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

TH International Limited THCH

• TH International entered into a transaction for the exclusive development of Popeyes in mainland China and Macau. The company’s stock has a 52-week high of $10.55 .
• RSI Value: 70.17
• THCH Price Action: Shares of TH International dipped 15.1% to close at $5.67 on Tuesday.

AutoNation Inc AN

• AutoNation reported better-than-expected Q4 adjusted EPS and sales results. The company’s stock has a 52-week high of $158.30.
• RSI Value: 71.63
• AN Price Action: Shares of AutoNation dipped 8.9% to close at $43.38 on Tuesday and added 0.4% in today’s pre-market trading.

Penske Automotive Group, Inc. PAG

• Penske Automotive Group’s board authorized an additional $250 million to repurchase outstanding securities. The company has a 52-week high of $155.36.
• RSI Value: 71.71
• PAG Price Action: Shares of Penske Automotive dropped 6.2% to close at $145.16 on Tuesday.

One Group Hospitality Inc STKS

• The One Group Hospitality, during November, reported worse-than-expected Q3 adjusted EPS and sales results. The company’s 52-week high is $12.50.
• RSI Value: 71.24
• STKS Price Action: Shares of One Group Hospitality fell 4.5% to close at $8.65 on Tuesday.

Five Below Inc FIVE

• Roth Capital recently upgraded the stock from Neutral to Buy. The company has a 52-week high of $212.56.
• RSI Value: 70.88
• FIVE Price Action: Shares of Five Below fell 1.4% to settle at $207.58 on Tuesday.

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