This week’s market sell-off snapped the S&P 500’s winning streak, but also provided investors with a chance to get invested ahead of a potential rebound. All three major averages are set to fall this week, although Friday’s reading of the Fed’s preferred inflation gauge was in line with expectations. The S&P 500 and Nasdaq were both on track to snap a five-week winning streak, while the Dow Jones Industrial Average posted a week of losses. Dow Jones component Salesforce fell about 19% this week, becoming the most oversold stock on the market. Investors sold off the stock after the company reported a revenue miss and weak guidance on Wednesday. With that in mind, CNBC Pro screened Wall Street’s most overbought and oversold stocks based on the 14-day relative strength index (RSI). Stocks with a 14-day RSI below 30 are considered oversold, indicating a possible comeback. On the other hand, a 14-day RSI above 70 indicates that the stock is overbought and may soon pull back. The following weekly data is as of 9:38 a.m. ET on Friday. Salesforce’s 14-day RSI is 16.4. The stock has fallen 13% so far this year. Shares fell about 20% on Thursday alone. Although Salesforce’s quarterly results disappointed investors, many Wall Street analysts remained optimistic about the stock and its artificial intelligence-related prospects, maintaining a consensus buy rating. Goldman Sachs said the company is an “undervalued Gen-AI winner,” and Morgan Stanley also highlighted the future benefits of artificial intelligence. Analysts surveyed by London Stock Exchange Group (LSEG) said they expected shares to surge more than 37% on that basis. Biopharmaceutical company Bristol-Myers Squibb is the second most oversold stock of the week. The stock is down more than 2% so far this week and is set to drop about 20% in 2024. The company is implementing a $1.5 billion cost reduction plan through 2025 through layoffs, role consolidation, discontinuation of certain drug programs and other cost-saving measures. Based on Bristol-Meyers Squibb’s average price target, shares could rise more than 29%. Here are some of the most overbought stocks this week: Technology company HP surged 17.1% this week, making it the most overbought stock with an RSI reading near 90. . While half of the analysts covering HP stock rate the stock as a Strong Buy or Buy, the stock may not be able to sustain its upward momentum. Analyst consensus targets a price decline of more than 5% from current levels. Shares fell more than 6% on Friday but are up about 20% so far this year. 2024 HPQ YTD Mountain HP Stock Ralph Lauren is another overbought brand, up nearly 7% this week. The company’s RSI reading is 76.9, and analysts expect upside of more than 3%. The apparel company’s fiscal fourth-quarter profit topped analysts’ expectations. The company also announced a 10% dividend increase. Shares rose nearly 14% in May and will rise nearly 30% in 2024.
