Top 2 Defensive Stocks That May Collapse In Q3

As of August 15, 2025, consumer staples stocks Celsius Holdings (CELH) and Altria Group (MO) are highlighted as potentially overbought, with RSI values of 77.9 and 75 respectively, despite recent strong financial performance. Celsius reported better-than-expected Q2 EPS and sales, driving its stock up 25% over the past month, while Altria surpassed Q2 adjusted EPS and sales estimates, with its stock gaining 13% in the same period. The elevated RSI levels suggest a potential caution for momentum investors, indicating that recent significant price appreciation may be unsustainable in the short term.

Analysis

Celsius Holdings (CELH) and Altria Group (MO) are exhibiting technical signals of being overbought, with RSI values of 77.9 and 75 respectively, suggesting a potential for short-term price consolidation or pullback. This technical caution contrasts with recent strong fundamental performance. Celsius reported better-than-expected Q2 EPS and sales, fueling a 25% stock price increase over the past month. Notably, its high Edge Stock momentum score of 96.38 is paired with a very low value score of 11.71, highlighting a potential valuation disconnect. Similarly, Altria surpassed Q2 analyst estimates for adjusted EPS and sales, despite a 1.7% year-over-year revenue decline. Its 13% stock gain over the past month has been supported by significant capital returns, with over $4 billion distributed to shareholders in the first half of the year through dividends and buybacks. The key takeaway is a divergence between positive corporate results driving stocks near their 52-week highs and technical indicators flashing a warning to momentum-focused investors.

Key Decisions for Investors

• Investors should exercise caution before initiating new long positions in CELH and MO, as their overbought RSI levels indicate a heightened risk of a short-term price correction.
• Current holders might consider trimming positions or implementing tighter stop-loss orders to protect the significant gains realized over the past month.
• For Celsius, the investment case requires balancing strong top-line growth against a high valuation premium, as suggested by its extremely low value score of 11.71.
• For Altria, investors should weigh the appeal of its substantial capital return program against its modest year-over-year sales decline and technically overextended stock price.