Now may be the time to buy Tesla stock, as a popular indicator on Wall Street suggests the stock may be ripe for a rebound. The overall market performed poorly this week as share prices of technology-related companies such as Tesla fell sharply. So far this week, the S&P 500 is down 0.2% and the Dow Jones Industrial Average is down 0.1%. The Nasdaq, which is dominated by technology stocks, has fallen 0.8%. Still, the sell-off in some stocks may have been overdone. Using the CNBC Pro Stock Screener tool, we looked for the most overbought and oversold stocks in the S&P 500 based on the 14-day Relative Strength Index, also known as RSI. Stocks with a 14-day RSI greater than 70 are in the overbought camp, which means they may be at risk of a pullback, as a high RSI usually indicates investors have been too optimistic about a stock over a short period of time. On the other hand, stocks with readings below 30 are considered oversold and may be ripe for recovery. Here are the most oversold stocks: Tesla shares have more than doubled in 2023 on strong revenue and deliveries, but the electric car maker has struggled to maintain its footing this year. Weak sales in the Chinese market and weak prospects for artificial intelligence will cause Tesla’s stock price to fall 35% in 2024. The stock is down 7% in the past week alone. Analysts have a unanimous hold rating on Tesla, with its 14-day RSI at 29.4. But they see potential future upside of about 23%, which could help it recoup some of its losses this year. Wells Fargo shares fell this week after downgrading the stock to underweight from equal weight. Boeing is also one of the most oversold companies on Wall Street. The plane maker’s shares have fallen 8% this week and are down 30% this year as quality control problems plague them. The stock’s 14-day RSI reading is 27. Still, sentiment around the stock remains positive, with the average analyst price target implying an upside of 40%, according to LSEG data. BA YTD mountain BA YTD Chart Boeing’s woes have broader consequences for the airline industry, including Southwest Airlines Co., which specializes in operating the 737. Southwest Airlines’ shares fell 18% this week after it said it was reconsidering its 2024 financial guidance, citing delivery delays from Boeing. The company’s stock price has fallen 3% this year, but analysts predict that the company may have more than 11% room for future growth. Other oversold companies on the list include Amgen and Globe Life. CNBC also found that some stocks may be due for a pullback soon. Here are the most overbought stocks in the S&P 500: Dupont De Nemours is one of the most overbought stocks, with its stock having a 14-day RSI reading of 78. Analysts have a consensus hold rating on the stock, and they predict it could rise. The edge is 1% higher. Dupont De Nemours is down 4% this year but is up 3% this week. Likewise, Targa Resources ranks among the most overbought companies in the S&P 500, with a 14-day RSI of 77.4. The stock is up 2% this week and has surged 22% in 2024. Analysts on average have a Buy rating on Targa stock, and their consensus price targets suggest the stock could rise 3% from here. TRGP YTD Mountain TRGP YTD Chart Investors may also be too bullish on Garmin. The technology company’s 14-day RSI is just below 80, up 4% last week and up 14% this year. However, analysts estimate that the stock price could fall by around 13%. Other overbought companies include Waste Management and Devon Energy. Disclosure: The above is subject to our Terms and Conditions and Privacy Policy. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not apply to your particular situation. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Click here to view the complete disclaimer.
