Top 2 Consumer Stocks That May Collapse This Quarter
Author: Avi Kapoor | July 16, 2025 07:45am
As of July 16, 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.
On May 22, Atour Lifestyle Holdings reported better-than-expected first-quarter financial results and raised its FY25 sales guidance. “Amid market volatility in the first quarter of 2025, we delivered strong results and drove high-quality growth across our hotel and retail businesses by adhering to our business philosophy of ‘serving people,'” said Mr. Haijun Wang, Founder, Chairman and CEO of Atour. The company's stock jumped around 14% over the past month and has a 52-week high of $37.46.
RSI Value: 73.5
ATAT Price Action: Shares of Atour Lifestyle rose 1.2% to close at $35.93 on Tuesday.
On July 8, WW International announced the successful completion of its strategic reorganization process. WeightWatchers implemented a financial reorganization transaction in May to strengthen its financial position and increase investment flexibility. The company eliminated $1.15 billion in debt. "This is a pivotal moment for WeightWatchers," said Tara Comonte, Chief Executive Officer of WeightWatchers. "With renewed financial strength, an expanded leadership team, and the addition of Dr. Boyd to lead clinical strategy and program innovation, we're accelerating our transformation." The company's stock gained around 346% over the past month and has a 52-week high of $46.95.
RSI Value: 73.3
WW Price Action: Shares of WW fell 8.2% to close at $33.95 on Tuesday.
Edge Stock Ratings: 99.82 Momentum score with Value at 7.75.
