The consumer discretionary sector is currently showing some interesting trends, particularly when it comes to stock momentum. Three companies – Sleep Number Corp (SNBR), Papa John’s International Inc (PZZA), and eBay Inc (EBAY) – have caught the attention of investors due to their high Relative Strength Index (RSI) values.
The RSI is a widely used momentum indicator that helps traders assess the strength of a stock’s price movement. When the RSI surpasses 70, it generally indicates that the stock is overbought, meaning it has risen sharply in a short period and may be due for a correction.
Let’s take a closer look at these three companies:
Sleep Number Corp (SNBR)
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RSI Value:
75.86*
Price Action:
Shares of Sleep Number closed at $18.98 on Tuesday, representing an 8.2% gain.*
Recent Developments:
On September 17, Piper Sandler analyst Peter Keith maintained a Neutral rating for Sleep Number but raised the price target from $12 to $16. The company’s stock has enjoyed a significant 33% increase over the past five days, reaching a 52-week high of $27.12.Papa John’s International Inc (PZZA)
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RSI Value:
72.22*
Price Action:
Shares of Papa John’s closed at $52.56 on Tuesday, marking a 3.5% gain.*
Recent Developments:
On September 9, Papa John’s appointed Kevin Vasconi as their Chief Digital and Technology Officer. The company’s stock has seen a 13% increase over the past month, hitting a 52-week high of $78.67.eBay Inc (EBAY)
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RSI Value:
82.85*
Price Action:
Shares of eBay closed at $64.88 on Tuesday, representing a 0.8% increase.*
Recent Developments:
On September 5, Cantor Fitzgerald analyst Deepak Mathivanan initiated coverage on eBay with a Neutral rating and a price target of $62. The company’s stock has witnessed a 14% rise over the past month, reaching a 52-week high of $64.96.While these three companies are currently showing signs of being overbought, it’s important to remember that the RSI is just one indicator and should be used in conjunction with other factors when making investment decisions. Investors should consider these signals as potential opportunities to re-evaluate their positions and assess the long-term prospects of these companies.
