GM overbought, AT&T oversold after active week of trading off earnings
Another strong week for stocks drove companies including General Motors to become overbought, according to one popular technical metric. Other stocks are also considered oversold after a busy earnings week. Each of the leading U.S. stock indexes closed higher this past week. All three major averages closed at record highs Friday after cooler-than-expected September inflation data , with the S & P 500 rising above 6,800 for the first time and the 30-stock Dow Jones Industrial Average topping 47,000 for the first time. CNBC Pro screened the S & P 500 for the stocks that were the most overbought and oversold by the end of the week, using their 14-day relative strength index, or RSI. An RSI reading under 30 generally indicates a stock is oversold and may soon bounce back, while an RSI above 70 suggests a stock is overbought and could see a near-term decline. The overbought stocks in the screen below were each up more than 5% this week, while the oversold stocks each fell by at least 5%. Take a look at the Street’s most overbought stocks: Intuitive Surgical is the most overbought name on the screen with an RSI above 82. The maker of robotic-assisted surgery systems soared more than 23% this week through early trading Friday, on the back of third-quarter results that exceeded analysts’ expectations. Investors cheered increased sales of its Da Vinci robotic systems in the period. Intuitive is also ahead 23% over the past month, but less than 5% for the entire year. General Motors was also overbought, with an RSI of roughly 74, after soaring 49% in the past six months. The Detroit automaker continued to cut costs, laying off more than 200 salaried employees on Friday, days after it raised its 2025 financial guidance and beat Wall Street’s top- and bottom-line earnings expectations for the third quarter. General Motors shares have rallied 31% this year. Its lofty RSI suggests vulnerability, however. Analysts’ consensus price target suggests GM stock will be little changed over the next year, according to LSEG data. 3M also rallied this week after reporting strong earnings. The maker of Scotch tape and other adhesives on Tuesday raised its annual profit forecast for the second time this year, driving up its stock by more than 12% on the week through early Friday. The company has a 14-day RSI of about 73. Meanwhile, the most oversold stocks in the S & P 500 were the following: AT & T , down more than 6% on the week through early trading Friday, and about 10% in the past three months, is oversold with an RSI of about 21.5. The company on Wednesday posted third-quarter results that topped wireless subscriber estimates , driven by success in its bundled plans and strong promotions around the latest iPhone launch. Managed health care provider Molina Healthcare is another deeply oversold stock after dropping more than 15% this week alone, taking its year to date loss to about 44%. The company cut its annual earnings guidance for the third time this year and reported significantly lower-than-expected earnings in its report released Wednesday.
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