Top 2 Consumer Stocks That May Implode In Q1

As of March 19, 2025, 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.

Honda Motor Co Ltd HMC

On Feb. 13, the company reported results for nine months and disclosed the termination of business integration talks with Nissan Motor Co., Ltd. NSANY. The company disclosed the cancellation of the previously inked memorandum of understanding (MOU) for business integration with Nissan Motor. The company's stock gained around 12% over the past month and has a 52-week high of $37.90.
RSI Value: 71.5
HMC Price Action: Shares of Honda Motor gained 1.4% to close at $30.41 on Tuesday.

Yum China Holdings Inc YUMC

On March 10, Yum China named Adrian Ding as Chief Financial Officer. “We are delighted to announce Adrian’s appointment as our CFO. Over the last five months, he has made significant contributions, proving himself as the ideal candidate to serve as the Chief Financial Officer of Yum China. He has effectively led the finance team, strengthened our engagement with stakeholders, including the capital markets, and played a pivotal role in building Yum China’s growth momentum,” said Joey Wat, CEO of Yum China. The company's stock gained around 14% over the past month and has a 52-week high of $53.83.
RSI Value: 71.8
YUMC Price Action: Shares of Yum China gained 0.7% to close at $53.69 on Tuesday.

Read This Next: