“After enduring a challenging week, these oversold stocks are poised for a rebound, offering investors an exciting opportunity to capitalize on potential gains in a recovering market.”
This week’s heavy market sell-off has left investors reeling, with the S&P 500 and Nasdaq Composite both experiencing significant losses. However, this downturn could present an opportunity for certain stocks, such as Tesla and Moderna, based on a popular metric.
CNBC Pro used FactSet data to screen for the most oversold and overbought stocks in the S&P 500, based on their 14-day relative strength index (RSI). An RSI above 70 is considered overbought, while a reading below 30 indicates oversold conditions.
Among the most oversold stocks is Moderna, with an RSI of 10.5. Despite its recent declines, analysts have a consensus price target suggesting a potential upside of over 128%. Align Technology, another company hit hard this week, also shows potential for a comeback according to analysts’ price targets.
Electric vehicle maker Tesla is also considered oversold, with an RSI of 15.42. Although its projected upside is the lowest on the list at 17.5%, more than a third of surveyed analysts still rate it as a buy.
On the other hand, some stocks are showing signs of being overbought. Aerospace and defense companies RTX and Lockheed Martin are among the most overbought stocks, with RSIs of 85.69 and 78.85, respectively. Dollar General also falls into the overbought category, with an RSI of 76.86.
While these metrics can provide insights into market sentiment, it’s important to conduct thorough research and consider various factors before making investment decisions. Market conditions can change rapidly, and individual stock performance may differ from overall market trends.
Overall, this week’s market sell-off may offer opportunities for investors, particularly in oversold stocks like Tesla and Moderna. However, careful analysis and consideration of other factors are essential when making investment decisions.