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After hitting the headlines this week, there may be buying opportunities for some stocks that have taken a hit. The relative strength indicator, which measures the magnitude and speed of price movements, is a common indicator used to assess whether a stock is overbought or oversold. A stock with a 14-day RSI below 30 is considered oversold, suggesting it could be a promising entry point for investors. A stock with a 14-day RSI above 70 is considered overbought, indicating a possible selling opportunity. Tesla is nearing the oversold mark with an RSI of just above 32. The stock has fallen more than 6% since Monday, putting the electric car maker on pace for its worst week since October. There was some decline on Friday as investors feared supply chain delays and further price cuts. The company has experienced schedule delays due to the Red Sea crisis. Reuters reported late Thursday that the company plans to halt production at most of its German factories for about two weeks because of the conflict. Car rental company Hertz’s decision announced this week to sell a significant portion of its Tesla fleet also soured sentiment. Elsewhere, Morgan Stanley cited new price cuts in China, but acknowledged that the cuts were more modest than expected. Tesla stock has fallen more than 11% so far this year and more than doubled in 2023 before giving up some of its gains. The average analyst surveyed by FactSet rates Tesla stock a hold and expects the stock to rise about 2% over the next year. Boeing also entered oversold territory at around 34 on the RSI as investors dumped the stock after last week’s explosion of a door plug on an Alaska Airlines flight caused alarm across the industry. did. The stock is expected to end the week down 12.2%, which would be its worst performance since May 2022. Over the weekend, the Federal Aviation Administration temporarily grounded more than 170 Boeing 737 Max 9 planes for inspection. His Boeing CEO, Dave Calhoun, said this week that the company acknowledged the mistake. Boeing stock has fallen more than 16% in the first two weeks of 2024, already giving up a significant portion of last year’s 36.8% gain. But the average analyst sees a turnaround ahead, with an overweight rating and price target suggesting the stock could rise nearly 25%, according to FactSet. Full List of Oversold List While many notable S&P 500 stocks are on the brink of oversold status, the only ones whose RSI is below 30 are Baker Hughes and Bunge’s Global Only his two brands. Below is the complete list of 10 stocks that are oversold or near oversold, compiled via CNBC Pro’s screener tool. Meanwhile, Juniper Networks was the most overbought stock in the broad index with an RSI of around 92.5. Traders have flooded into networking hardware stocks this week, sending shares up about 28%. Hewlett Packard Enterprise on Tuesday announced a definitive agreement to acquire Juniper. The all-cash deal values the stock at $40, 33.7% higher than last week’s closing price. The next most overbought stock is the pharmaceutical stock Vertex, with an RSI near 87. The stock is up more than 4% this week. Vertex announced on Tuesday that it has received marketing approval in Saudi Arabia for the treatment of sickle cell disease and transfusion-dependent beta-thalassemia. According to a company release, the Middle Eastern country has the highest prevalence of these two diseases in the world. The stock price rose more than 6.5% in 2024, after rising more than 40% in 2023. But the average analyst surveyed by FactSet expects the stock to decline by about 3.5%, despite the overweight rating, so a correction could be in the offing. Here is the complete list of overbought stocks: The above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The content is general in nature and does not reflect your unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Click here for full disclaimer.
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