As of Dec. 6, 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.
US Foods Holding Corp (NYSE:USFD)
- On Nov. 7, US Foods Holding reported third-quarter adjusted earnings per share of 85 cents, beating the street view of 83 cents. Quarterly sales of $9.728 billion (+6.8%) outpaced the analyst consensus estimate of $9.718 billion, driven by total case volume growth and food cost inflation of 3.2%. "We delivered strong results in the third quarter despite the softer macro environment and weather-related challenges which pressured industry case volumes," said Dave Flitman, CEO.. The company's stock gained around 10% over the past month and has a 52-week high of $72.84.
- RSI Value: 80.83
- USFD Price Action: Shares of US Foods gained 0.5% to close at $72.33 on Thursday.
- Benzinga Pro's real-time newsfeed alerted to latest USFD news.
Hormel Foods Corp (NYSE:HRL)
- On Dec. 4, the company reported that fourth-quarter adjusted earnings per share were 42 cents, which is in line with the street view. Quarterly sales of $3.138 billion missed the analyst consensus estimate of $3.144 billion. "The combination of underlying business strength and the capture of $75 million in operating income benefit from our Transform and Modernize (T&M) initiative helped to offset a dynamic consumer environment, the steep decline in whole bird turkey commodity markets, and the production disruption at our Suffolk, Virginia, facility," said Jim Snee, chairman of the board, president and chief executive officer. The company's stock gained around 7% over the past month and has a 52-week high of $36.86.
- RSI Value: 73.95
- HRL Price Action: Shares of Hormel Foods gained 2.7% to close at $32.86 on Thursday.
- Benzinga Pro’s charting tool helped identify the trend in HRL stock.
Walmart Inc (NYSE:WMT)
- On Nov. 19, Walmart announced third-quarter results and raised its fiscal-2025 guidance. The retailer reported adjusted EPS of 58 cents, beating the consensus of 53 cents. The company's stock gained around 14% over the past month and has a 52-week high of $95.60.
- RSI Value: 84.40
- WMT Price Action: Shares of Walmart gained 0.9% to close at $95.30 on Thursday.
- Benzinga Pro’s signals feature notified of a potential breakout in WMT shares.
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