This week’s most overbought stocks include Deere and Quanta Services
Even as stocks broadly rose this week, investors disproportionately piled into names such as Deere and Quanta Services . The major averages rose this week after the Supreme Court struck down President Donald Trump’s emergency tariffs. The ensuing relief rally lifted stocks during Friday’s trading session after the release of disappointing economic data earlier in the day. CNBC Pro used its stock screener tool to identify stocks that could be heading for a decline or a bounce based on their 14-day relative strength index reading, or RSI. Stocks with a 14-day RSI above 70 are considered overbought, meaning that a pullback could be on the horizon. On the other hand, a reading below 30 indicates that a stock is oversold and may soon be due for a potential rebound. The following table lists overbought stocks: One name that made the list was agricultural machinery manufacturer Deere, with an RSI of 78. Shares were up almost 10% on the week. The stock rose nearly 12% alone on Thursday after Deere posted raised its full-year net income guidance. The company also reported fiscal first-quarter earnings and revenue beats. Following the company’s quarterly report, Morgan Stanley reiterated its overweight rating on the stock. Analyst Angel Castillo’s $560 price target implies a downside of 15%. “We expect a positive stock reaction to a solid beat and raise, although ultimate performance will cue off commentary on NA Large Ag trends,” Castillo wrote. Meanwhile, Jefferies’ Stephen Volkmann stood by his hold rating and $475 price target, implying that shares could fall 28% from here. Another most overbought name this week was infrastructure services provider Quanta Services, up more than 5% on the week. The stock’s RSI sits at 73. Still, investors stood by their bullishness on the name following its fourth-quarter earnings beat. Quanta Services also guided for full-year earnings that surpassed analysts’ expectations, according to FactSet. On Friday, Bank of America analyst Sherif El-Sabbahy maintained his buy rating and hiked his price target to $610 from $500, implying upside of 10%. On the other hand, stocks in oversold territory this week include Blackstone and Apollo Global Management . Blackstone made the list, with an RSI of 27. Shares were were down more than 6% on the week. Fellow asset manager Apollo Global Management, which had an RSI of about 28, posted a weekly loss of more than 4%.
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