While the S & P 500 is on pace to close out this volatile trading month higher, some individual stocks may still be due for a pullback. On Friday, the final trading day in August, the S & P 500 and the Dow Jones Industrial Average are on pace for monthly gains of roughly 1%. This would mark the fourth consecutive winning month for both indexes – which overcame a sharp global sell-off on Aug. 5.
Pro used its stock screener tool to search for Wall Street's most overbought and oversold names based on their 14-day relative strength index, or RSI. Those with a 14-day RSI above 70 are considered overbought, signaling that shares may potentially move lower. On the other hand, a reading below 30 typically indicates that a stock is oversold, meaning a potential rebound may be ahead. Lockheed Martin made the screen as one of the most overbought stocks, having an RSI of about 82.3.
Pro's screen also found some names that have fallen sharply. Here are some of Wall Street's most oversold stocks. Dollar General has the lowest RSI on the list at about 19.7. Shares plummeted more than 32% on Thursday alone after the retailer not only missed the Street's earnings and revenue expectations for the second quarter but also cut its full-year forecast. Shares of competitor Dollar Tree – which also made the oversold screen with an RSI of 21.