Top 2 Consumer Stocks That Could Sink Your Portfolio In August

As of Aug 22, 2024, two 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.

CAVA Group Inc (NYSE:  CAVA)

• CAVA Group will host a conference call on Thursday, Aug. 22 to discuss second quarter 2024 financial results and provide a business update. The company's stock gained around 28% over the past month and has a 52-week high of $102.90.
• RSI Value: 72.99                              
• CAVA Price Action: Shares of CAVA gained 4.7% to close at $102.87 on Wednesday.

Ross Stores Inc ROST

• On Aug. 21, Ross Stores said its Board of Directors declared a regular quarterly cash dividend of 36.75 cents per common share, payable on Sept. 30 to stockholders of record as of Sept. 10. The company's stock gained around 6% over the past five days and has a 52-week high of $157.85.
• RSI Value: 73.08
• ROST Price Action: Shares of Ross Stores closed at $153.95 on Wednesday.

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