Top 5 Consumer Stocks That Could Lead To Your Biggest Gains In June

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.

Ulta Beauty, Inc. ULTA

• The company raised its FY23 revenue guidance. "The year is off to a positive start as the Ulta Beauty team delivered revenue, operating margin, and diluted EPS consistent with our internal expectations. Store traffic remained healthy, member growth showed continued strength, we delivered growth across key categories, and we strengthened engagement with the Ulta Beauty brand," said Dave Kimbell, chief executive officer. The company’s stock has a 52-week low of $360.58 .
• RSI Value: 29.00
• ULTA Price Action: Shares of Ulta Beauty fell 0.3% to close at $421.01 on Monday.

Hibbett, Inc. HIBB

• Hibbett reported first-quarter FY23 sales growth of 7.4% year-on-year to $455.50 million, missing the consensus of $460.40 million. Mike Longo, President and Chief Executive Officer, stated, “Hibbett posted solid sales results in a challenging environment, delivering a 4.1% comparable sales increase and a total sales increase of 7.4% versus last year.” The company’s stock has a 52-week low of $34.86.
• RSI Value: 20.77
• HIBB Price Action: Shares of Hibbett fell 1.1% to close at $36.21 on Monday.

The Children's Place, Inc. PLCE

• Children's Place reported worse-than-expected first-quarter financial results and issued FY23 adjusted EPS and revenue guidance below estimates. Jane Elfers, President and Chief Executive Officer, announced, “Our first quarter results were negatively impacted by the ongoing macro-tension which resulted in outsized pressure on our core customer by limiting their purchasing power.” The company’s stock has a 52-week low of $14.27.
• RSI Value: 23.95
• PLCE Price Action: Shares of Children's Place fell 1.7% to close at $15.51 on Monday.

Foot Locker, Inc. FL

• Foot Locker reported worse-than-expected financial results. First-quarter revenue of $1.93 billion missed estimates of $1.99 billion. "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 52-week low is $23.85.
• RSI Value: 26.76
• FL Price Action: Shares of Foot Locker fell 4.9% to close at $24.61 on Monday.

Advance Auto Parts, Inc. AAP

• Advance Auto Parts reported worse-than-expected first-quarter financial results and cut FY23 EPS and revenue guidance below estimates. Tom Greco, president and chief executive officer, said, “I want to thank our Advance team members and independent partners for their continued hard work and focus on serving our customers. While we anticipated the first quarter would be challenging, our results were below our expectations.” The company has a 52-week low of $65.56.
• RSI Value: 14.49
• AAP Price Action: Shares of Advance Auto Parts fell 2.9% to close at $65.59 on Monday.

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