Top 3 Risk Off Stocks That May Implode In Q3

by | Aug 7, 2026 | General

As of Aug. 7, 2026, three stocks in the consumer staples 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.

Honest Company Inc (NASDAQ:HNST)

  • On Aug. 5, Honest reported better-than-expected second-quarter financial results and raised its FY26 sales guidance above estimates. “For the second quarter we delivered accelerated Organic Revenue growth of 7% and record underlying margins,” said Chief Executive Officer, Carla Vernón. The company’s stock gained around 45% over the past five days and has a 52-week high of $5.84.
  • RSI Value: 89.7                                
  • HNST Price Action: Shares of Honest rose 40.8% to close at $5.42 on Thursday.
  • Edge Stock Ratings: 96.12 Momentum score.

J&J Snack Foods Corp (NASDAQ:JJSF)

  • On Aug. 5, J&J Snack Foods posted better-than-expected quarterly earnings. “Fiscal 2026 has been a year of disciplined transformation, and that work continued to pay off in the third quarter,” said Dan Fachner, President, and CEO of J&J Snack Foods. The company’s stock gained around 20% over the past five days and has a 52-week high of $116.32.
  • RSI Value: 81.9
  • JJSF Price Action: Shares of J&J Snack Foods rose 8.5% to close at $91.86 on Thursday.

elf Beauty Inc (NYSE:ELF)

  • On Aug. 5, e.l.f. Beauty posted upbeat first-quarter earnings and raised its FY2027 guidance. “I’m proud of the e.l.f. Beauty team for achieving another quarter of industry-leading results,” said Tarang Amin, e.l.f. Beauty’s Chairman and Chief Executive Officer. The company’s stock gained around 23% over the past month and has a 52-week high of $150.99.
  • RSI Value: 76.6
  • ELF Price Action: Shares of elf Beauty gained 6.9% to close at $92.31 on Thursday.

How do other stocks rank? Get the full BZ Edge Rankings breakdown here.

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