This week’s most overbought names include Darden Restaurants and Target
Investors piled into select names like Darden Restaurants and Target even as stocks posted weekly losses. The major averages closed lower this week as traders digested comments President Donald Trump made regarding National Economic Council Director Kevin Hassett’s chances at becoming the next chair of the Federal Reserve. While Hassett was widely seen as the frontrunner for the position, Trump said on Friday that he would rather have him stay in his current role . All three major indexes ended the week in negative territory. Still, investors showed love for certain individual stocks, pushing them into overbought territory. CNBC Pro used its stock screener tool to identify such stocks as measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are considered overbought, meaning that a pullback could be on the horizon. Conversely, a reading below 30 indicates that a stock is oversold and may soon be due for a potential rebound. The following table shows overbought names: With an RSI of 77, one name that made the list was Darden Restaurants, the owner of chains such as The Capital Grille, Olive Garden and Cheddar’s Scratch Kitchen. Shares were up 6% on the week. But some analysts are getting cautious on the name. Last week, Truist Securities analyst Jake Bartlett downgraded Darden to a hold rating from buy, while lowering his price target to $207 from $240. “Following a tough year for restaurants (-17.3% vs.+16.4% for the S & P), we see a mixed macro setup, so are pointing investors towards stocks with idiosyncratic, or ‘self-help’ stories,” he wrote. “We are downgrading DRI to a Hold, from Buy, due to a lack of incremental drivers in ’26, the challenge of lapping strong drivers in ’25 and inline valuation.” Bartlett’s updated forecast implies that shares could fall more than 3% from their Friday close. Other overbought names on the screen have found more favor from analysts recently, perhaps contributing to their stock runups. For instance, Gordon Haskett upgraded Target to buy rating from hold on Tuesday. The stock had an RSI of 80. “In the spirit of both a new year/clean slate along with the never-ending search for contrarian ideas . . . we are upgrading Target to Buy-Rated from Hold-Rated — establishing a new $140 Price Target, which suggests over 30% upside from current levels,” wrote analyst Chuck Grom. Similarly, last week Truist upgraded aerospace and defense stock Lockheed Martin to a buy rating from hold. The stock’s RSI of 82 made it tied for one of Wall Street’s most overbought stocks this week. On the other hand, stocks in oversold territory this week include Datadog and Intuit . Datadog made the list, with an RSI of 22. Shares were 5% lower on the week as of Friday’s close. But Morgan Stanley analyst Sanjit Singh’s $180 price target implies that the stock could rally more than 50% from its Friday close. Singh upgraded the stock to an overweight rating from equal-weight on Monday. “The return of digital transformation & cloud migration initiatives and an emerging opportunity to monitor agentic apps are fueling accelerating core growth which should sustain thru 2027. While risk to initial guide remains, improving underlying growth trends should ultimately drive shares higher,” the analyst wrote. Another name that could soon see its fortunes change is Intuit, which locked in an RSI of 22. But TD Cowen initiated coverage at a buy rating last week. “We see upside to consensus expectations and perceived AI risks as overdone, positioning INTU shares to outperform following recent underperformance,” wrote analyst Jared Levine. Levine’s $802 price target is approximately 47% higher than where shares closed on Friday. The stock was down almost 16% on the week.
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