Here are the most oversold stocks due for a bounce following the market's tough week

  • 📰 CNBC
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

CNBC Pro used FactSet data to screen for the most overbought and oversold names in the S&P 500 based on their 14-day relative strength index, or RSI.

This week's heavy market sell-off could bode well for certain stocks, including Tesla and Moderna , based on one popular metric. Investors are reeling from a tough session on Thursday, with the S & P 500 and tech-heavy Nasdaq Composite losing more than 1% each during the day's trading session, and the latter falling deeper into correction territory as Meta and Alphabet dragged the index down. All three major averages are on track for steep weekly declines.

Pro used FactSet data to screen for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. A stock with a 14-day RSI greater than 70 is considered to be overbought and at risk of a pullback. A high RSI typically signals that investors are getting too optimistic about a stock in the near term.

's "Squawk Box" that the war in Ukraine and the Israel-Hamas conflict have created "unprecedented demand" for munitions. Dollar General , which has a 14-day RSI of 76.86, is also overbought. Analysts covering the stock forecast a 4.6% upside for the company's stock price, and less than 30% rate it a buy. Dollar General shares have jumped 13% this month and are on pace for a nearly 4% gain this week.

's Michael Bloom contributed reporting.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hedge funds are betting the most against these stocks as market breaks downCNBC Pro used FactSet data to screen for stocks with the most short interest as of Oct. 13.
Source: CNBC - 🏆 12. / 72 Read more »