These stocks are oversold and could bounce back
After quite a disappointing week for the broader market, several very beaten-down names in the S & P 500 could soon be due for a rally, according to one popular technical metric. All three major U.S. indexes ended the week in the red, with the Nasdaq notching its worst week since April. Investors have grown concerned about a potential bubble in artificial intelligence stocks and high valuations in several tech names. Adding to the stress this week were two data releases that revealed consumer sentiment has neared its lowest level ever and that layoff announcements in October hit their highest level for the month since 2003. The lack of key data releases during the ongoing lengthy U.S. government shutdown has limited investors’ insight into the state of the economy. With several stocks selling off over the past week, we took to searching for the most oversold and overbought stocks on Wall Street as measured by their 14-day relative strength index, or RSI, according to the CNBC Pro stock screener tool. Stocks with a 14-day RSI below 30 are considered oversold, implying that they could soon be due for a bounce. On the other hand, reading above 70 suggests a stock could be overbought and see a pullback in the near term. Fintech company Fiserv has an RSI of about 14, making the company the most oversold stock on Wall Street. Shares cratered 44% on Oct. 29, which was the worst day ever for the stock. This year, shares are down roughly 69%. Fiserv’s crash came after the compan y slashed its full-year guidance and announced several changes to its executive leadership team. Fiserv attributed its slowing growth to Argentina’s deteriorating economic environment, as the country last year contributed 10 percentage points to Fiserv’s 16% organic growth rate. The average analyst price target on Fiserv of $106.02 per share still implies 66.6% potential upside ahead, based on LSEG data. Several Wall Street firms, including Goldman Sachs, UBS, Morgan Stanley, just to name a few, downgraded the stock after Fiserv’s huge earnings disappointment. Morgan Stanley lowered its rating on shares to equal weight from overweight and cut its price target $81 from $179, saying the company’s new efforts to rebuild its offerings will take time. FI 1Y mountain Fiserv stock over the past year. Investors are also bearish on food delivery platform DoorDash after the company lost nearly 19% week to date. The stock has an RSI of 23.8. Shares tanked after DoorDash said it plans to spend “several hundred million dollars” next year on new product initiatives, such as autonomous delivery. DoorDash’s third-quarter profit also missed analysts’ consensus forecast, according to LSEG. Other oversold stocks are cruise companies Royal Caribbean Cruises and Norwegian Cruise Line Holdings , which have RSIs of 25.2 and 24.3, respectively. On the other hand, Eli Lilly made the cut as one of the market’s the most overbought stocks, with an RSI of 72.4. Shares are up nearly 19% this year and about 6.4% week to date after the pharmaceutical giant posted a beat on top and bottom lines for the third quarter and raised its full-year outlook, driven by strong international demand for its weight loss drug Zepbound and diabetes treatment Mounjaro. Adding to investor optimism on the stock is Eli Lilly’s recent agreement with the Trump administration to sell Zepbound at a reduced price on TrumpRx — the government’s discount platform — which could significantly expand access to the drug. President Donald Trump has said that Medicare and Medicaid will cover the cost of weight loss drugs. “Following the White House formally announcing Medicare/Medicaid coverage for Obesity, we reaffirm our view that LLY is best positioned to capitalize on Diabesity [total addressable market],” Deutsche Bank research analyst James Shin wrote in a Friday note to clients. Analysts polled by LSEG have a consensus price target on Eli Lilly that suggests the stock could see limited gains of roughly 3%. Other overbought stocks this week are Amgen , McKesson and Incyte . McKesson, up 5% this week and 49.5% this year, jumped after the pharma company on Wednesday raised its fiscal year 2026 profit forecast.
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