After experiencing recent weakness heading into the new year, several stocks are poised to rebound. Despite a strong market performance in 2024, with the S&P 500 rising more than 20% for the second consecutive year, major U.S. stock indexes closed lower on the final trading day of 2024 and the stock market skipped the so-called Santa Claus rally. The index ended a five-day losing streak on Friday but remained lower for the week, its third weekly decline in the past four years. Using the CNBC Pro Stock Screener tool, we found Wall Street’s most oversold stocks, as measured by their relative strength index (RSI), which measures the speed and scale of a security’s recent price changes. A stock with a 14-day RSI below 30 usually indicates that the stock is oversold and may rebound. Take a look at the companies below: HCA Holdings is one of the most oversold stocks in the S&P 500, with an RSI of 22.4. After President-elect Donald Trump won the election in early November, many investors took a negative view of the health care company because HCA is a hospital chain that benefits from Medicaid and Affordable Care Act subsidies that expire in 2020. The risk is higher in the period. London Stock Exchange Group (LSEG) said analysts still have a consensus buy rating on the stock, with the average analyst price target predicting a rise of nearly 37% in the future. That suggests the recent hit to share prices may be exaggerated. The stock has fallen about 9% in the past month. Coors Light maker Molson Coors Beverage is another oversold brand, with a 14-day RSI of 23.5. The Wall Street consensus rating on the stock is a Hold, but analysts expect upside of more than 13% on average. Shares have been weak for some time, down 10% in the past month, but alcohol stocks fell again on Friday as the U.S. surgeon general warned of a link between drinking and a higher risk of cancer. The recommendation could be a first step toward other policy changes, which could include placing warning labels on products. Ahead of the announcement, Bank of America analyst Brian Spillane said he expected 2025 to be a “more normal year” for Molson Coors. Analysts’ optimism comes from expectations that U.S. beer industry sales will improve. In early December, he upgraded Molson Coors to “buy” from “neutral” and raised his price target to $70, suggesting the stock could rise more than 26% from Friday’s closing price. Also on the oversold list are steel producers Nucor and Steel Dynamics. Weak demand in manufacturing and construction, as well as rising import prices for some steel products, have hurt shares of these companies.
