Here are the most overbought and oversold S&P 500 stocks, including several tech names
Stocks moved higher this week as companies continued to report earnings, which can sometimes lead to volatile action. The S & P 500 , for example, rose about 0.9% this week and finished the month 1.5% higher — its second positive month in a row. Yet, while all three major indexes gained this week, some stocks are still considered to be oversold. One metric to determine if a stock is overbought or oversold is the “relative strength index,” which measures the magnitude and speed of price moves. An equity with a 14-day RSI under 30 is considered oversold, which means it may be an opportunity to buy. Meanwhile, those with a 14-day RSI above 70 are considered overbought — and the names could be due for a pause. CNBC Pro screened for S & P 500 stocks in both the overbought and oversold territory, based on their RSI. Too oversold Here is a list of the 10-most oversold names, which includes an oil refiner. Valero Energy has the lowest 14-day RSI on the list, at 16.67. Nearly 64% of the analysts covering the stock, rate it a buy. The U.S. refiner reported a first-quarter earnings beat on Thursday, despite the pullback in oil prices during the period. Its adjusted earnings per share came in at $8.27, compared with the $7.23 expected by analysts polled by StreetAccount. Revenue also topped expectations. Even so, Valero shares are down 9.6% year to date. Last week, Wells Fargo downgraded the stock to equal weight from overweight. “We raise the caution flag on the refining sector,” analyst Roger Read wrote in a note to clients. “Rapidly contracting diesel/jet cracks restrict the potential for near-term outperformance.” Several tech names also made the list, with Hewlett Packard Enterprise , Juniper Networks and Qualcomm among the stocks with the lowest RSIs of the sector. In March, Hewlett Packard Enterprises reported first-quarter revenue of $7.8 billion, the highest for the company since 2016 . That came in above Wall Street’s expectations, according to StreetAccount, and the company’s own guidance for the quarter. Its adjusted earnings per share was 63 cents, topping StreetAccount’s estimate of 54 cents. However, just 21% of the analysts covering HPE rate the stock a buy, per FactSet. The stock is down about 10% year to date. Meanwhile, Juniper Networks has shed nearly 6% year to date, and Qualcomm has gained about 6%. Most overbought Here are the 10-most overbought names. Topping this ranking is Molson Coors Beverage , with a 14-day RSI of 96.77. Just 19% of the analysts covering the stock give it a buy rating. The beverage giant is set to report earnings on Tuesday. Chipotle Mexican Grill also made the cut, with a 14-day RSI of 89.82. On Tuesday, the fast-casual chain reported earnings and revenue that beat Wall Street’s expectations thanks to better-than-expected same-store sales growth. The company said restaurant traffic grew despite higher menu prices, which are up about 10% from a year earlier. However, Chipotle CEO Brian Niccol said the company will pause its price increases for now. Nearly 62% of the analysts covering Chipotle rate the stock a buy. Shares are up a whopping 49% so far this year. On Friday, shares hit a fresh 52-week high of $2,071.00 intraday.