Consumer Discretionary Stocks on Watch: Signet Jewelers and Cricut

Signet Jewelers and Cricut are two consumer discretionary stocks that could negatively impact a portfolio in Q2. Signet Jewelers has a 52-week high of $112.06 and a RSI value of 73.2, while Cricut has a 52-week high of $7.17 and a RSI value of 70.4. Both stocks have gained significantly in the past month, and investors should be cautious of their overbought status.

Investors in the consumer discretionary sector should be cautious about two stocks that have shown significant gains recently: Signet Jewelers (SIG) and Cricut, Inc. (CRCT). Both stocks have reached overbought status, as indicated by their Relative Strength Index (RSI) values, which could potentially negatively impact portfolios in the second quarter (Q2).

Signet Jewelers has a 52-week high of $112.06 and an RSI value of 73.2, indicating that it is significantly overbought [2]. The stock posted better-than-expected quarterly earnings, with shares gaining around 10% over the past month. However, the RSI value suggests that the stock may be due for a correction.

Similarly, Cricut, Inc. has a 52-week high of $7.17 and an RSI value of 70.4, also indicating overbought conditions [2]. The stock reported better-than-expected first-quarter financial results, with shares rising around 25% over the past month. Despite its positive performance, the RSI value suggests that the stock may be overvalued.

Both stocks have shown strong momentum, but investors should be mindful of the potential risks associated with overbought conditions. It is essential to monitor these stocks closely and consider adjusting portfolio allocations accordingly.

References:
[1] https://stockinvest.us/stock/CRCT
[2] https://www.benzinga.com/trading-ideas/short-ideas/25/06/45742897/top-2-consumer-stocks-that-could-sink-your-portfolio-in-q2