Restaurant stocks McDonald's and Chipotle could be due for a pullback after the market's rally this week

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The stock market is enjoying its best week of 2023, but some names may have gotten ahead of themselves.

The Dow Jones Industrial Average is up 5% for the week. The S & P 500 and tech-heavy Nasdaq Composite are 5.6% and 5.8% higher, respectively, and are on pace for their highest weekly gains since November 2022. Several consumer names, including McDonald' s and Kraft Heinz , jumped on the back of their quarterly earnings reports this week. Other big names such as Airbnb , PayPal , and pharmaceutical giants Pfizer and Amgen also reported their earnings and saw their stocks rise.

Pro screened FactSet to find 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 indicates near-term investor sentiment on a stock is becoming too optimistic.

's " Squawk on the Street " on Monday that McDonald's is in "a great spot competitively to continue to gain share" in both U.S. and important overseas markets, such as Europe. The stock has added just 1.9% year to date. MCD YTD mountain McDonald's stock Beverage company Coca-Cola was another one of the several consumer names on this week's overbought list. Coca-Cola has an RSI of 79.66 on the list.

mountain SolarEdge shares Revvity, Henry Schein, Align Technologies and Fortive are some of the other oversold names from this week.

 

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