Stocks rebounded from a global rout to end higher on Friday, but some stocks may still have a chance to rebound. The stock market got off to a bad start this week. Disappointing employment data combined with the unraveling of the yen “carry trade”, not to mention concerns that the Fed waited too long to cut interest rates, sent major stock indexes lower. But stock indexes moved higher after upbeat weekly jobless claims data were released on Thursday, with the S&P 500 notching its best day since 2022. 0.04%. The Nasdaq closed up 0.51% on Friday, while the Dow Jones Industrial Average rose 0.13%. With that in mind, CNBC Pro screened Wall Street’s most overbought and oversold stocks, as measured by the 14-day relative strength index (RSI). Stocks with a 14-day RSI above 70 are considered overbought, which means they may be at risk of a pullback. Alternatively, stocks with an RSI below 30 are considered oversold, indicating a possible buying opportunity. Disney is likely to rebound higher, with an RSI of 27.7. Even though the entertainment giant’s fiscal third-quarter results topped Wall Street expectations, the company’s shares fell nearly 4% this week. The stock has a consensus rating of “Buy” for 2024 and its shares are even lower, down about 4.5%. The company reported that its theme park business in the United States has been hit by declining consumer demand. In an earnings call with analysts, Disney executives said they expect attendance to be flat in the coming quarters. “We’re seeing a slight slowdown in demand. I certainly wouldn’t call it a major change,” Disney Chief Financial Officer Hugh Johnston said. “I just think it’s slowing down a little bit, but the impact from the entertainment industry is more than offset by that.” Take-Two Interactive Software also falls into the oversold category, having the highest RSI in the group near 28. and income. While shares are up slightly this week, up nearly 1%, the stock is down 10% in 2024. Microcomputer and Ulta Beauty. There are also companies whose stock prices may have surged too high and may suffer some losses down the road. Here are Wall Street’s most overbought stocks. Kelanova is one of them. The stock has the highest RSI of the group at 87.2, up 19% for the week. The stock jumped sharply at the start of the week, closing up 16% on Monday, following reports that M&M’s and Snickers maker Mars were considering acquiring Kellanova. The stock hit a new 52-week high that session. This year, shares are up nearly 34%. Taser maker Axon Enterprise’s K YTD mountain Kellanova is another name that has seen its share price rise this week so far this week. On Wednesday, the stock had an RSI of 75.3, up more than 18% as the company beat second-quarter earnings and revenue estimates. The company also raised its full-year revenue guidance. Axon Enterprise now expects revenue this year to be between $2 billion and $2.05 billion, up from a range of $1.94 billion to $1.99 billion. Analysts remain bullish on the stock, with a consensus buy rating. The stock ended the week up nearly 25% and is up more than 41% this year. AXON YTD mountain Axon Enterprise, also part of the group so far this year, Lockheed Martin, has an RSI of 84.9 and was rated Outperform by RBC earlier this week . Shares are up 21.7% this year. Northrop Grumman also makes the cut with an RSI of 75.
