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Two Consumer Staples Stocks Flashing Overbought Signals

MarketDash Editorial Team
19 hours ago
Spectrum Brands and Dollar General are showing RSI readings above 70 after strong rallies, suggesting these momentum plays in the consumer staples sector might be due for a breather despite recent positive earnings reports.

As of December 11, 2025, two consumer staples stocks are giving momentum traders something to think about. Both companies have had impressive runs lately, but their technical indicators suggest they might be getting ahead of themselves.

The Relative Strength Index is one of those tools that sounds more complicated than it actually is. It simply measures how strong a stock's gains have been compared to its losses over a specific period. When the RSI climbs above 70, it typically means an asset is overbought—which is Wall Street speak for "maybe things have gotten a bit too hot, too fast." It doesn't guarantee a pullback, but it's often a yellow flag for traders watching momentum.

Spectrum Brands Shows Strength After Strategic Shift

Spectrum Brands Holdings Inc. (SPB) is sitting at an RSI of 70.3, right at that overbought threshold. The stock has climbed roughly 19% over the past month, reaching a 52-week high of $93.33 along the way.

The rally makes sense when you look at recent developments. On November 13, Spectrum Brands reported fourth-quarter adjusted earnings per share that beat expectations. More interesting than the numbers themselves was what CEO David Maura had to say about the company's strategic pivot.

"Earlier in the year, we made the difficult but necessary decision to address the uncertain trade policy by halting all imports from China for the US market and focus on running the business for cash," Maura explained. "Our fourth quarter and full year results reflect the impacts of those decisions and a challenging macroeconomic environment. Despite these headwinds, the actions we proactively and decisively took reduced our risk significantly and protected our long-term financial health."

In other words, Spectrum Brands saw potential tariff trouble coming and decided to rip the Band-Aid off. Shares of Spectrum Brands rose 5% to close at $61.18 on Wednesday. The stock has a momentum score of 22.64 with a value rating of 46.50.

Dollar General's Discount Appeal Pays Off

Dollar General Corp. (DG) is even more overbought with an RSI of 71. The discount retailer has surged approximately 21% over the past month and recently hit a 52-week high of $135.08.

On December 4, Dollar General delivered better-than-expected third-quarter fiscal 2025 results and raised its full-year guidance—always a combination that gets investors excited. The company posted net sales of $10.65 billion, essentially matching the consensus estimate of $10.64 billion. Nothing flashy there, but beating on earnings while maintaining steady revenue in a tough retail environment counts as a win.

Shares of Dollar General rose 0.3% to close at $125.89 on Wednesday.

Both stocks have legitimate reasons for their recent strength—solid earnings, strategic positioning, and resilience in challenging conditions. But when momentum indicators flash overbought, it's often worth pausing to consider whether the good news is fully priced in. For traders who prioritize technical signals, these elevated RSI readings suggest that near-term upside might be limited, even if the longer-term fundamentals remain intact.

Back to News

Two Consumer Staples Stocks Flashing Overbought Signals

MarketDash Editorial Team
19 hours ago
Spectrum Brands and Dollar General are showing RSI readings above 70 after strong rallies, suggesting these momentum plays in the consumer staples sector might be due for a breather despite recent positive earnings reports.

As of December 11, 2025, two consumer staples stocks are giving momentum traders something to think about. Both companies have had impressive runs lately, but their technical indicators suggest they might be getting ahead of themselves.

The Relative Strength Index is one of those tools that sounds more complicated than it actually is. It simply measures how strong a stock's gains have been compared to its losses over a specific period. When the RSI climbs above 70, it typically means an asset is overbought—which is Wall Street speak for "maybe things have gotten a bit too hot, too fast." It doesn't guarantee a pullback, but it's often a yellow flag for traders watching momentum.

Spectrum Brands Shows Strength After Strategic Shift

Spectrum Brands Holdings Inc. (SPB) is sitting at an RSI of 70.3, right at that overbought threshold. The stock has climbed roughly 19% over the past month, reaching a 52-week high of $93.33 along the way.

The rally makes sense when you look at recent developments. On November 13, Spectrum Brands reported fourth-quarter adjusted earnings per share that beat expectations. More interesting than the numbers themselves was what CEO David Maura had to say about the company's strategic pivot.

"Earlier in the year, we made the difficult but necessary decision to address the uncertain trade policy by halting all imports from China for the US market and focus on running the business for cash," Maura explained. "Our fourth quarter and full year results reflect the impacts of those decisions and a challenging macroeconomic environment. Despite these headwinds, the actions we proactively and decisively took reduced our risk significantly and protected our long-term financial health."

In other words, Spectrum Brands saw potential tariff trouble coming and decided to rip the Band-Aid off. Shares of Spectrum Brands rose 5% to close at $61.18 on Wednesday. The stock has a momentum score of 22.64 with a value rating of 46.50.

Dollar General's Discount Appeal Pays Off

Dollar General Corp. (DG) is even more overbought with an RSI of 71. The discount retailer has surged approximately 21% over the past month and recently hit a 52-week high of $135.08.

On December 4, Dollar General delivered better-than-expected third-quarter fiscal 2025 results and raised its full-year guidance—always a combination that gets investors excited. The company posted net sales of $10.65 billion, essentially matching the consensus estimate of $10.64 billion. Nothing flashy there, but beating on earnings while maintaining steady revenue in a tough retail environment counts as a win.

Shares of Dollar General rose 0.3% to close at $125.89 on Wednesday.

Both stocks have legitimate reasons for their recent strength—solid earnings, strategic positioning, and resilience in challenging conditions. But when momentum indicators flash overbought, it's often worth pausing to consider whether the good news is fully priced in. For traders who prioritize technical signals, these elevated RSI readings suggest that near-term upside might be limited, even if the longer-term fundamentals remain intact.