Investors may be crowding too much into defensive stocks amid market jitters

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A stock is considered overbought if its 14-day RSI goes above 70, signaling investors should consider easing their exposure.

A 14-day RSI under 30, however, signals that a stock is oversold, meaning there may be a buying opportunity. Mondelez , PepsiCo and Molson Coors — all staples — are the most overbought S & P 500 names through Friday's session. Mondelez, the company that makes Oreo cookies and other snacks, has an RSI of 89.2, while PepsiCo and Molson Coors have RSI scores of more than 84 each. Shares of Mondelez have rallied more than 16% year to date, easily outperforming the S & P 500's 7.

mountain MDLZ in 2023 However, analysts think there's little-to-no upside in these stocks right now. The average analyst price targets for Mondelez and PepsiCo imply upside of 3% for each name, per FactSet. As for Molson, analysts on average expect the beer maker to fall 1%. Another deeply overbought stock is Republic Services . The waste management company has soared more than 14% in 2023. However, just 40% of analysts have a buy rating on the name.

 

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