Top 3 Consumer Stocks That Could Blast Off This Quarter

Author: Avi Kapoor | September 04, 2024 08:47am

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.

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 oversold when the RSI is below 30, according to Benzinga Pro.

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

Red Robin Gourmet Burgers Inc (NASDAQ:RRGB)

• On Aug. 22, Red Robin Gourmet Burgers reported worse-than-expected second-quarter adjusted EPS results and lowered its FY24 revenue guidance below estimates.. The company's stock fell around 38% over the past month and has a 52-week low of $3.28.
• RSI Value: 28.02
• RRGB Price Action: Shares of Red Robin fell 4.6% to close at $3.34 on Tuesday.
• Benzinga Pro's real-time newsfeed alerted to latest RRGB news.

Advance Auto Parts, Inc. (NYSE:AAP)   

• On Aug. 22, The company reported earnings per share of 75 cents, missing the street view of $1.07. Quarterly sales of $2.683 billion beat the street view of $2.679 billion. Revenues remained flat, while comparable store sales increased 0.4%. Advance Auto Parts has revised its FY24 outlook, lowering its earnings per share forecast to $2.00 – $2.50 from the previous range of $3.75 – $4.25, which contrasts with the $3.63 estimate. The company's stock fell around 26% over the past month. It has a 52-week low of $43.70.
• RSI Value: 21.42
• AAP Price Action: Shares of Advance Auto Parts closed at $43.72 on Tuesday.
• Benzinga Pro’s charting tool helped identify the trend in AAP stock.

Designer Brands Inc (NYSE:DBI)

• On June 4, Designer Brands reported worse-than-expected first-quarter earnings. The company reported first-quarter FY24 sales growth of 0.6% year-on-year to $746.596 million, beating the analyst consensus estimate of $741.630 million. The company's shares fell around 22% over the past five days and has a 52-week low of $5.99.
• RSI Value: 29.52
• DBI Price Action: Shares of Designer Brands closed at $6.13 on Tuesday.
• Benzinga Pro’s signals feature notified of a potential breakout in DBI shares.

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Posted In: AAP DBI RRGB