Expedia and this beauty stock are among the most oversold names
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A slate of prominent stocks have sat out this week’s rally and are oversold — but they may be due for a rebound. The S & P 500 is poised for its third straight winning week, touting a 1.8% advance. Both the Nasdaq Composite and the Dow Jones Industrial Average are also on pace for solid weekly gains. Even as the overall market rose this week, certain individual stocks saw a sharp decline. Using the CNBC Pro Stock Screener tool , we found the most overbought and oversold stocks on Wall Street based on their 14-day relative strength index, or RSI. Stocks with a 14-day RSI lower than 30 fall under oversold territory — and may be due for a rebound in the future. Conversely, stocks with RSI levels over 70 are considered overbought and may go through a pullback. Here are some of the most oversold names: Expedia made the cut of oversold names, off more than 2% week to date. The online travel company reported first-quarter results on May 2 and lowered its guidance for the full year, pointing to slowness in its vacation home business Vrbo. Expedia has a 14-day RSI reading of about 26. Although the average price target indicates shares gaining nearly 32% from their current levels, analysts aren’t so sure about the stock, according to LSEG data. The average rating on the stock is a hold. EXPE 5D line Expedia’s performance over the past five days Ulta is another stock on the oversold list. The beauty retailer has lost nearly 24% in the current quarter as it struggles with increased competition. Barclays downgraded shares to equal weight from overweight on April 29. The firm also slashed its price target to $434 from $612, citing a faster-than-expected slowdown in the beauty segment. The stock has a 14-day RSI of 29. Nonetheless, analysts are bullish on shares, with a consensus buy rating and price target suggesting 38% room for upside. CNBC also found some names that could see a pullback. Here are the S & P 500′s most overbought stocks: Defense tech company Leidos Holdings is the most overbought name on the list, with shares holding a 14-day RSI reading of 83.069. Although analysts overall have a buy rating on the stock, the consensus price target suggests shares may only have 7.7% upside from their current levels. Leidos shares are up more than 3% week to date and are up nearly 36% in 2024. Analysts are forecasting NextEra Energy shares to experience a pullback soon. The stock has a 14-day RSI of 81.29 and the average price target is around 1.5% below the current share price, according to LSEG data. To be sure, analysts remain bullish on the shares: The stock still has a consensus buy rating. Shares have jumped roughly 6% this week and have rallied more than 21% year to date. Navigation tech company Garmin may see its rally come to an end soon. The stock has jumped about 2% this week, and it’s up more than 31% for the year. However, the consensus price target implies shares could slide 13.8% from their current levels. Analysts are lukewarm on the stock with an average rating of a hold. DISCLOSURES: THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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