Top 3 Risk Off Stocks That May Collapse This Quarter

As of Nov. 20, 2024, three stocks in the consumer staples 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.

Energizer Holdings Inc ENR

On Nov. 19, Energizer Holdings reported better-than-expected fourth-quarter adjusted EPS results. “We finished fiscal 2024 with solid performances across both Battery and Auto Care, driving adjusted earnings growth above our initial expectations,” said Mark LaVigne, President and Chief Executive Officer. The company's stock gained around 15% over the past month and has a 52-week high of $39.21.
RSI Value: 88.06
ENR Price Action: Shares of Energizer gained 9.1% to close at $37.25 on Tuesday.

Freshpet Inc FRPT

On Nov. 4, Freshpet reported better-than-expected third-quarter financial results and raised its full-year adjusted EBITDA outlook. “Our third quarter results demonstrate the strength and consistency of both net sales and profitability growth we have been striving to deliver. We delivered our 25th consecutive quarter of >25% year on year net sales growth and matched that with a very strong operating performance. This further strengthens our confidence in our ability to meet or exceed our 2027 goals,” commented Billy Cyr, Freshpet’s Chief Executive Officer. The company's stock gained around 14% over the past month and has a 52-week high of $159.12.
RSI Value: 72.43
FRPT Price Action: Shares of Freshpet gained 3.9% to close at $156.38 on Tuesday.

Cal-Maine Foods Inc CALM

On Oct. 1, the company posted better-than-expected quarterly earnings. Sherman Miller, president and chief executive officer of Cal-Maine Foods, stated, “Our financial and operating results for the first quarter mark a strong start to fiscal 2025 for Cal-Maine Foods. These results reflect favorable demand for shell eggs during most of the quarter and significantly higher market prices compared with the first quarter last year.” The company's stock gained around 4% over the past month and has a 52-week high of $96.02.
RSI Value: 70.14
CALM Price Action: Shares of Cal-Maine gained 1.3% to close at $95.14 on Tuesday.

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