The stock market may have ended November with a bang, but that doesn’t mean there are no more buying opportunities left for investors. On Thursday, the Dow Jones Industrial Average gained 520 points, or 1.47%, to notch a new high for 2023. The 30-stock index surged 8.8% in November, closing out its best month since October 2022. Similarly, the S & P 500 and Nasdaq Composite each respectively added 8.9% and 10.7% for their best monthly performances since July 2022. But investors who feel they might have missed the bandwagon need not worry. Some stocks may have become overbought as investors chased returns. On the flip side, some oversold names could be due for some near-term gains. CNBC Pro used FactSet data to find the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. A 14-day RSI reading above 70 typically indicates that a stock is overbought and could face a pullback. On the other hand, a stock with a 14-day RSI reading below 30 could be oversold, presenting investors with a buying opportunity. Here are some of the most overbought names: Equifax was the most overbought name on the list, with a 14-day RSI reading of 97.13. About 46% of analysts covering the credit reporting agency rate it a buy, and consensus price targets suggest downside of 4% from here, according to FactSet. Shares are up 14% in 2023. Back in October, Stifel highlighted mortgage trends as a likely headwind for Equifax in 2024. Analyst Shlomo Rosenbaum cut his price target to $208 from $231 but rates the stock a buy. “Ultimately, we think the mortgage headwinds are likely to bottom in 2H24, though increased pricing in early January 2024 should offset some of the mortgage volume headwinds,” the analyst said. Take-Two Interactive Software was the next name on the list, with an RSI reading of 95.62. About 65% of analysts covering the video game company currently rate it a buy, with consensus price targets suggesting upside of nearly 4%. The stock is having a hot year, up 52% in 2023. In November, Wedbush analyst Nick McKay highlighted Take-Two’s “solid Q2:24 results,” but pointed to uncertainty around the release date for Grand Theft Auto VI. “We are reluctant to include the game in our model for FY:25,” McKay wrote. Other overbought names on the list include BlackRock and Northern Trust . Also included was DexCom , which surged 30% in November. On the oversold side, CNBC Pro found 10 names with the lowest RSI readings. Stocks that are oversold include Cigna , which has a 14-day RSI of 20.49. Just under half of analysts rate the stock at a buy and call for an average potential upside of 33%. Shares of the insurance giant slid 8% Wednesday, after The Wall Street Journal, citing people familiar, reported that Cigna was planning a merger with Humana . Cigna is off 18% in 2023. Next on the list was food processing company Hormel Foods , with an RSI of 25.73. Although none of the analysts covering the stock rate it a buy, they still see an average 6% upside from here. Shares of Hormel pulled back 6% in November after the company posted quarterly earnings that disappointed analysts. Shares are down more than 30% in 2023. Other names on the list included Cisco and Wynn Resorts . — CNBC’s Fred Imbert contributed to this report.
These stocks are overbought following November’s big market surge
Customer Support
1251 Wilcrest Drive
Houston, Texas
77042 USA
Call-832.795.1420
e-mail – news@theinsightpost.com
Discussion about this post