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Two Consumer Staples Stocks Flash Overbought Warning Signs

MarketDash Editorial Team
12 days ago
Vita Coco and Kellanova are showing RSI readings above 70, suggesting these momentum winners may be due for a pullback. Here's what investors watching technical indicators need to know about these overheated stocks.

When stocks run too hot, too fast, momentum can become a double-edged sword. As of November 26, 2025, two consumer staples names are flashing warning signals that momentum-focused traders should probably pay attention to.

The culprit here is the Relative Strength Index, a momentum indicator that measures a stock's performance on up days versus down days. Think of it as a fever thermometer for stocks. When the RSI climbs above 70, an asset is typically considered overbought—meaning it might be due for a breather or worse. Here's who's running hot right now.

Vita Coco Shows Extreme Momentum

Vita Coco Company Inc. (COCO) delivered a powerful one-two punch in late October with better-than-expected third-quarter earnings and revenue. The coconut water maker has been riding high ever since.

Michael Kirban, the company's Co-Founder and Executive Chairman, struck an optimistic tone in the earnings release. "I am very proud of our team and our very strong third quarter performance," Kirban said. "The coconut water category continues to be one of the fastest growing categories in the beverage aisle, with Vita Coco Coconut Water maintaining strong retail sales growth rates in the United States and our core international markets. We believe this growth is being fueled by our investment as the category leader in these focus markets, driving increased household penetration and new consumption occasions. I believe we are well positioned to continue to drive long term growth in 2026 and beyond."

The market clearly agreed. Vita Coco's stock surged roughly 29% over the past month, pushing shares to a 52-week high of $53.10. On Tuesday, the stock climbed another 3.7% to close at $53.03.

The momentum metrics tell the story: COCO is sporting an RSI of 76.7, well into overbought territory. The stock also carries a momentum score of 86.15, though its value score of 37.81 suggests the rally may have gotten ahead of fundamentals.

Kellanova Rides Post-Earnings Strength

Kellanova (K) also delivered upbeat quarterly results in late October, though its run hasn't been quite as explosive as Vita Coco's. Still, the stock is showing classic overbought characteristics.

"Once again our organization demonstrated resilience as we managed through prolonged category softness and higher costs," said Steve Cahillane, Kellanova's chairman, president, and chief executive officer. "We have pivoted toward innovation, productivity, and emerging market expansion, notably noodles in Africa, which helped us deliver earnings above expectations in the third quarter."

Kellanova has gained around 3% year-to-date and recently hit a 52-week high of $83.65. Shares edged up 0.1% on Tuesday to close at $83.49. The stock's RSI currently sits at 72.2, putting it just above the overbought threshold.

What does this mean for investors? An elevated RSI doesn't guarantee an immediate selloff, but it does suggest these stocks have experienced strong buying pressure and may be vulnerable to profit-taking. For momentum traders, these readings often signal it's time to be cautious rather than chase the rally higher. Both companies delivered solid fundamentals to justify their recent gains, but the technical picture suggests the easy money may already be made.

Back to News

Two Consumer Staples Stocks Flash Overbought Warning Signs

MarketDash Editorial Team
12 days ago
Vita Coco and Kellanova are showing RSI readings above 70, suggesting these momentum winners may be due for a pullback. Here's what investors watching technical indicators need to know about these overheated stocks.

When stocks run too hot, too fast, momentum can become a double-edged sword. As of November 26, 2025, two consumer staples names are flashing warning signals that momentum-focused traders should probably pay attention to.

The culprit here is the Relative Strength Index, a momentum indicator that measures a stock's performance on up days versus down days. Think of it as a fever thermometer for stocks. When the RSI climbs above 70, an asset is typically considered overbought—meaning it might be due for a breather or worse. Here's who's running hot right now.

Vita Coco Shows Extreme Momentum

Vita Coco Company Inc. (COCO) delivered a powerful one-two punch in late October with better-than-expected third-quarter earnings and revenue. The coconut water maker has been riding high ever since.

Michael Kirban, the company's Co-Founder and Executive Chairman, struck an optimistic tone in the earnings release. "I am very proud of our team and our very strong third quarter performance," Kirban said. "The coconut water category continues to be one of the fastest growing categories in the beverage aisle, with Vita Coco Coconut Water maintaining strong retail sales growth rates in the United States and our core international markets. We believe this growth is being fueled by our investment as the category leader in these focus markets, driving increased household penetration and new consumption occasions. I believe we are well positioned to continue to drive long term growth in 2026 and beyond."

The market clearly agreed. Vita Coco's stock surged roughly 29% over the past month, pushing shares to a 52-week high of $53.10. On Tuesday, the stock climbed another 3.7% to close at $53.03.

The momentum metrics tell the story: COCO is sporting an RSI of 76.7, well into overbought territory. The stock also carries a momentum score of 86.15, though its value score of 37.81 suggests the rally may have gotten ahead of fundamentals.

Kellanova Rides Post-Earnings Strength

Kellanova (K) also delivered upbeat quarterly results in late October, though its run hasn't been quite as explosive as Vita Coco's. Still, the stock is showing classic overbought characteristics.

"Once again our organization demonstrated resilience as we managed through prolonged category softness and higher costs," said Steve Cahillane, Kellanova's chairman, president, and chief executive officer. "We have pivoted toward innovation, productivity, and emerging market expansion, notably noodles in Africa, which helped us deliver earnings above expectations in the third quarter."

Kellanova has gained around 3% year-to-date and recently hit a 52-week high of $83.65. Shares edged up 0.1% on Tuesday to close at $83.49. The stock's RSI currently sits at 72.2, putting it just above the overbought threshold.

What does this mean for investors? An elevated RSI doesn't guarantee an immediate selloff, but it does suggest these stocks have experienced strong buying pressure and may be vulnerable to profit-taking. For momentum traders, these readings often signal it's time to be cautious rather than chase the rally higher. Both companies delivered solid fundamentals to justify their recent gains, but the technical picture suggests the easy money may already be made.