As of Aug. 29, 2025, 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.
Ulta Beauty Inc (NASDAQ:ULTA)
- On Aug. 28, Ulta Beauty reported upbeat financial results for the second quarter and raised its fiscal year 2025 guidance. Ulta Beauty reported second-quarter revenue of $2.79 billion, beating the consensus estimate of $2.67 billion. The company reported second-quarter earnings of $5.78 per share, beating analyst estimates of $4.97 per share, according to Benzinga Pro. The company's stock jumped around 3% over the past month and has a 52-week high of $538.59.
- RSI Value: 70.8
- ULTA Price Action: Shares of Ulta Beauty fell 0.6% to close at $530.63 on Thursday.
- Edge Stock Ratings: 88.37 Momentum score with Value at 55.12.
Lands End Inc (NASDAQ:LE)
- On July 15, Small Cap Consumer Research analyst Eric Beder reiterated Lands’ End with a Buy and maintained a $20 price target. The company's stock gained around 20% over the past month and has a 52-week high of $19.88.
- RSI Value: 72.8
- LE Price Action: Shares of Lands End fell 1% to close at $14.56 on Thursday.
BZ Edge Rankings: Find out where other stocks stand—explore the full comparison now.
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