In the world of investing, momentum can be your best friend or your worst enemy. As of April 9, 2024, three consumer discretionary stocks are raising red flags for those who rely on momentum indicators for their trading decisions.
One such indicator, the Relative Strength Index (RSI), helps investors gauge the strength of a stock during price movements. An RSI above 70 is often seen as a sign that a stock may be overbought, hinting at a potential downturn in the near future.
Let’s take a closer look at these volatile players in the consumer sector.
Superior Industries International, Inc. SUP
- Superior Industries International recently reported disappointing fourth-quarter financial results, attributing the challenges to various operational hurdles. Despite these setbacks, the company’s stock surged by 47% in the last five days, hitting a 52-week high of $5.22.
- RSI Value: 83.94
- SUP Price Action: Shares closed at $4.26 on Monday, marking a 20% gain.
Sweetgreen, Inc. SG
- Sweetgreen, Inc. saw its stock rise by 33% over the past month after Oppenheimer reiterated an Outperform rating and raised its price target. Despite this positive momentum, the shares closed at $25.13 on Monday, reflecting a 1.1% decline.
- RSI Value: 70.55
- SG Price Action: The stock dipped to $25.13 at market close on Monday.
SharkNinja, Inc. SN
- SharkNinja, Inc. caught the eye of JP Morgan analyst Andrea Teixeira, who initiated coverage with an Overweight rating and set a price target of $70. The stock surged by 16% over the past month, hitting a 52-week high of $65.61.
- RSI Value: 77.67
- SN Price Action: Closing at $64.83 on Monday, the stock experienced a slight 0.2% increase.
While these stocks have exhibited significant volatility recently, investors should tread cautiously and keep a close eye on their movements to avoid any rude awakenings in the market.
Curious about more stock insights? Check out our article on Neogen, Maxeon Solar Technologies, and other stocks worth monitoring as we head into the trading week.