Top 2 Consumer Stocks That May Plunge This Quarter

As of May 3, 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.

Alibaba Group Holding Limited (NYSE:BABA)

• On April 19, Alibaba Group Holding introduced a novel shopping application for Taobao, China's largest online market. The application is designed for Apple's Vision Pro mixed-reality headset. The company's stock gained around 11% over the past month and has a 52-week high of $102.50.
• RSI Value: 71.40                              
• BABA Price Action: Shares of Alibaba gained 6.4% to close at $80.33 on Thursday.

Brinker International, Inc. (NYSE:EAT)

• On April 30, Brinker reported strong third-quarter financial results and raised FY24 guidance. The company raised its FY24 adjusted EPS outlook from $3.45-$3.70 to $3.80-$4.00 against the estimate of $3.69. billion against an estimate of $4.338 billion. The company's stock gained around 13% over the past five days and has a 52-week high of $55.92.
• RSI Value: 71.19
• EAT Price Action: Shares of Brinker fell 1.1% to close at $54.34 on Thursday.

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