Sometimes the market gets a little too excited about a good thing. As of December 10, 2025, two consumer discretionary stocks are showing momentum readings that might make cautious traders pause before jumping in.
The Relative Strength Index, or RSI, measures how forcefully a stock has been moving by comparing its up days to its down days. It's a momentum gauge that helps traders sense when things might be getting overdone. When the RSI climbs above 70, it typically signals an overbought condition—meaning the stock might need to catch its breath after a strong run.
Here's a closer look at two major consumer stocks that have momentum traders paying attention.
General Motors Co (GM)
General Motors is riding high right now. On December 9, Goldman Sachs analyst Mark Delaney maintained his Buy rating and bumped up his price target from $81 to $93. The automaker's shares have climbed about 9% over the past month, pushing close to the 52-week high of $77.35.
RSI Value: 77.9
GM Price Action: Shares of GM rose 1.9% to close at $77.16 on Tuesday.
The stock currently sports an Edge momentum score of 88.36 with a value rating of 73.59, indicating strong technical momentum combined with reasonable valuation metrics.
Carvana Co (CVNA)
If you think GM's run looks impressive, Carvana has been on an absolute tear. The online used car retailer announced on December 5 that it will join the S&P 500 on December 22—the kind of news that tends to bring in a wave of index fund buying. The company's stock has rocketed 42% higher over the past month, trading near its 52-week high of $458.64.
On December 9, Evercore ISI Group analyst Michael Montani maintained an In-Line rating while raising his price target from $395 to $420, acknowledging the stock's momentum even while staying neutral on the name.
RSI Value: 78.6
CVNA Price Action: Shares of Carvana rose 1.9% to close at $456.33 on Tuesday.
Both stocks are well into overbought territory by traditional technical measures. That doesn't mean they'll immediately reverse course—momentum can persist longer than seems rational—but it does suggest these names might be vulnerable to profit-taking or any negative news that gives investors a reason to lock in gains.