Top 5 Consumer Stocks You May Want To Dump In June

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.

AMMO, Inc. POWW

• AMMO posted better-than-expected quarterly earnings. The company’s stock has a 52-week high of $6.06 .
• RSI Value: 73.33
• POWW Price Action: Shares of AMMO fell 2.9% to close at $2.04 on Wednesday.

Dave & Buster's Entertainment, Inc. PLAY

• Dave & Buster's Entertainment reported better-than-expected first-quarter EPS results. "We are pleased to report strong results for our first quarter of fiscal 2023. Our extremely talented team of operators and support center employees continue to execute on the breadth of strategic opportunities we've identified to unlock significant revenue growth and cost efficiency opportunities in our business which will continue to bring meaningful upside to all stakeholders and in all macro-economic environments," said Chris Morris, Dave & Buster's Chief Executive Officer. The company’s stock has a 52-week high of $47.29.
• RSI Value: 70.80
• PLAY Price Action: Shares of Dave & Buster's fell 5.8% to close at $43.41 on Wednesday.

Sweetgreen, Inc. SG

• Sweetgreen reported better-than-expected first-quarter EPS results. "I am pleased with our first quarter results. We delivered strong top line sales while reducing losses in the first quarter, which was supported by positive traffic growth. As we continue to gain sales momentum, we see profitability within reach," said Jonathan Neman, Co-Founder and Chief Executive Officer. The company has a 52-week high of $21.66.
• RSI Value: 72.14
• SG Price Action: Shares of Sweetgreen rose 1.7% to close at $10.89 on Wednesday.

Modine Manufacturing Company MOD

• Modine Manufacturing Company reported better-than-expected fourth-quarter financial results. "Strong execution against our multiyear transformation strategy drove outstanding revenue and margin growth this quarter despite the increased level of volatility and uncertainty in the current market," said Modine President and Chief Executive Officer, Neil D. Brinker. The company’s 52-week high is $34.01.
• RSI Value: 72.66
• MOD Price Action: Shares of Modine Manufacturing fell 2.6% to close at $31.95 on Wednesday.

Toll Brothers, Inc. TOL

• Toll Brothers posted better-than-expected quarterly sales. The company has a 52-week high of $75.97.
• RSI Value: 70.57
• TOL Price Action: Shares of Toll Brothers fell 2.4% to settle at $73.30 on Wednesday.

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