As the S & P 500 nears its all-time high set in mid-July, some stocks may have become too overbought and are due for a pullback. The broad market index is on pace to rally for five consecutive positive sessions, and is almost 4% higher this week alone. The tech-heavy Nasdaq Composite has surged 5.8% this week, while the Dow Jones Industrial Average is 2.5% higher. That performance has left a host of stocks with outsized gains. With that in mind, CNBC Pro used its stock screener tool to find the most overbought and oversold companies, using each one’s 14-day relative strength index, or RSI. Stocks with a 14-day RSI score above 70 are typically regarded as overbought, indicating a pullback may be looming, while a 14-day RSI under 30 suggests a stock is oversold and may rebound. Retail giant Walmart is among this week’s most overbought stocks, with an 14-day RSI reading of 81.7. Although analysts remain bullish on the Arkansas-based chain, the consensus price target is only 1% above the stock’s current level, according to LSEG, indicating a pullback may be ahead. Walmart traded at a new all-time high on Friday, bringing the year-to-date gain to a market-beating 53%. WMT YTD mountain Walmart shares in 2024 Clorox is another company on the list. The bleach and Glad bag maker has an RSI reading of 78.8 after soaring nearly 25% over the past three months. Now, analysts are less sure on Clorox, with three-fifths of those covering the company rating it a hold. The average price target on the Oakland, California-based stock is nearly 10% below the stock’s current price, suggesting a pullback may lie ahead. Year to date, Clorox shares are up more than 16%. Consumer health-care company Kenvue , spun off from Johnson & Johnson in August 2023, was also overbought this week, with an RSI of 78.6. Half the analysts covering the Band-Aid maker rate it a hold, and their average price target implies the stock will decline about 5% over the next year. Shares are up 29% over the past three months. Let’s take a look at some of this week’s most oversold stocks: Several oil companies have suffered even as the broader market has bounced back from sell-offs in August and September. Energy is the only one of the 11 S & P 500 sectors that is down this week, as oil prices closed at a nearly three-year low on Tuesday. Oil and oil service stocks Halliburton and APA have 14-day RSI readings of 22.5 and 23.9, respectively. Occidental Petroleum has an RSI reading of 24.4. According to…
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