Alphabet and these two other stocks are overbought with the market near all-time highs
Some overbought stocks could face pressure in the near term, especially after a record-setting week on Wall Street. The S & P 500 touched a fresh all-time high Friday as traders mounted bets the Federal Reserve will cut rates following a lackluster August jobs report . That enthusiasm turned to worry quickly, however, as the benchmark quickly rolled over to end the day on a down note. Still, the S & P 500 eked out a small gain for the week and sits about 1% from its all-time high. But while the benchmark is near record levels, certain individual names have become overbought — making them vulnerable to declines. CNBC Pro scanned LSEG data to find stocks that are overbought based on their 14-day relative strength index. Stocks that have a 14-day RSI above 70 are considered overbought. Conversely, a reading below 30 signals that a stock may be oversold, indicating a potential bounce from here. Shares of Alphabet have surged more than 9% this week, bring its 14-day RSI to 84.1 — the highest on the list. A favorable ruling in the company’s antitrust case with the U.S. Department of Justice helped add more than $230 billion to the company’s market capitalization this week. A federal judge ruled that Google can keep its Chrome browser, which was a key reprieve for investors given its importance to Alphabet’s revenue. GOOGL YTD mountain Alphabet stock in 2025. Data storage firms Seagate Technology and Western Digital also made the overbought list. Shares of Seagate have gained more than 10% this week, while Western Digital stock has climbed roughly 15%. WDC 5D mountain Western Digital stock has been on a tear this week. Morgan Stanley analyst Erik Woodring named Seagate a top pick in a note to clients this week, noting “increased confidence” in the company’s technology trajectory. He also said a more than 20% valuation discount to peers is “unwarranted.” The stock’s 14-day RSI of 75.4 indicate that shares may have run to far too fast, however. Among oversold names, discount retailer stock Dollar Tree made the list. Shares slipped more than 8% this week after the company’s dull-year guidance fell short of Wall Street’s estimates — which also overshadowed better-than-expected second quarter results. DLTR YTD mountain Dollar Tree stock in 2025.
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