There may be buying opportunities in a few stocks getting hit after making headlines this week. The relative strength indicator, which measures the magnitude and speed of price moves, is a popular metric used to evaluate whether shares are overbought or oversold. A stock with a 14-day RSI below 30 is considered oversold, suggesting that it could be a promising entry point for investors. Those with a 14-day RSI above 70 are considered overbought, signaling a possible selling opportunity. Tesla is nearing the oversold threshold with an RSI slightly above 32. Shares have fallen more than 6% since Monday, putting the electric vehicle maker on pace for its worst week since October. Part of the leg down came on Friday, as investors were spooked by supply chain delays and further price cuts. The company has seen timelines pushed due to the crisis in the Red Sea. Reuters reported late Thursday that the company has plans to suspend most production at its German factory for about two weeks because of the conflict. A decision by rental car company Hertz to sell a sizable portion of its Tesla fleet announced this week also hurt sentiment. Elsewhere, Morgan Stanley noted new discounts in China, while acknowledging that the price cuts were more modest than expected. Tesla shares have fallen more than 11% so far this year, giving up some gains after more than doubling in 2023. The average analyst surveyed by FactSet has a hold rating on the stock and expects shares to rise about 2% over the next year. Boeing also encroached on oversold territory with an RSI around 34 as investors ditched the stock after a door plug blowout during an Alaska Airlines flight last week raised broader industry alarm. Shares are poised to finish the week 12.2% lower, which would be its worst performance since May 2022. The Federal Aviation Administration ordered the temporary grounding of more than 170 Boeing 737 Max 9 aircraft for inspections last weekend. Boeing CEO Dave Calhoun said this week that the company has acknowledged its mistake . Boeing stock has dropped more than 16% over the first two weeks of 2024, already relinquishing a sizable chunk of last year’s 36.8% jump. But the average analyst sees a turnaround ahead, with an overweight rating and price target implying shares can rally nearly 25%, per FactSet. The full oversold list While many noteworthy S & P 500 stocks are on the verge of being oversold, just two actual have RSIs below 30: Baker Hughes and Bunge Global . Here’s the full list of 10 stocks either at or near being oversold, compiled via CNBC Pro’s screener tool: On the other end of the spectrum, Juniper Networks took the spot of most overbought in the broad index with an RSI of about 92.5. Traders have poured into the networking hardware stock this week, sending shares almost 28% higher. Hewlett Packard Enterprise announced a definitive agreement to acquire Juniper on Tuesday. The all-cash deal values shares at $40, which is 33.7% higher than where the stock closed last week. Pharmaceutical stock Vertex was the next most overbought with an RSI near 87. Shares advanced more than 4% this week. Vertex said on Tuesday that it received marketing authorization on a treatment for sickle-cell disease and transfusion-dependent beta thalassemia in Saudi Arabia. The Middle Eastern country has the highest prevalence of these two illnesses in the world, according to a release from the company. Shares have jumped more than 6.5% in 2024, building on 2023’s rally of more than 40%. But there may be a correction ahead, as the average analyst polled by FactSet, despite having an overweight rating, sees shares slipping around 3.5%. Here’s the full list of overbought stocks: 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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