Top 2 Consumer Stocks That May Collapse In Q4

As of Oct. 4, 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.

Trip.com Group Ltd TCOM

• On Aug. 26, Trip.com Group posted better-than-expected quarterly earnings. “The second quarter of 2024 witnessed continued growth driven by strong travel demand, especially for cross-border travel,” said James Liang, Executive Chairman. “Our strong performance highlights our adaptability in a dynamic market. Looking ahead, we are dedicated to leveraging the potential of AI to revolutionize the travel industry and provide exceptional value to our customers.” The company's stock gained around 36% over the past month and has a 52-week high of $67.02.
• RSI Value: 77.46                              
• TCOM Price Action: Shares of Trip.com fell 3.4% to close at $64.63 on Thursday.

TAL Education Group TAL

• TAL Education Group will announce second quarter of fiscal year 2025 financial results on Oct. 24. The company's stock gained around 44% over the past month and has a 52-week high of $15.52.
• RSI Value: 70.91
• TAL Price Action: Shares of TAL Education fell 3.5% to close at $11.39 on Thursday.

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