[ad_1]
Equities have stalled this week, putting the major averages on pace for a lackluster finish after notching five-straight weeks of gains. In particular, energy stocks notably sold off during a difficult week for oil prices, weighing on market benchmarks. As of Friday afternoon, the Dow Jones Industrial Average and S & P 500 were down by 0.3% and 0.1% for the week, respectively. Meanwhile, the tech-heavy Nasdaq Composite was on track for a better week, notching gains of 0.3%. Oil companies comprised seven out of 10 of this week’s most oversold shares in the S & P 500. Using data from FactSet, CNBC Pro screened for the most overbought and oversold stocks based on the relative strength index. The RSI measures the strength and velocity of stock price moves to gauge whether a stock is overbought or oversold. A 14-day RSI score under 30 implies that a stock is oversold and could be due for a buying opportunity. A result higher than 70 suggests shares are overbought and could be approaching a pullback point. Here are the most oversold names for the trading week ending Dec. 8: Oil prices headed for their seventh-straight weekly loss due to oversupply and weak demand from China. Oil giant ExxonMobil made the list with a 14-day RSI of 21.0. Shares were down more than 3% this week and are now off more than 15% this quarter. Nonetheless, analysts’ consensus price target suggests 28.2% upside potential. JPMorgan named Exxon as one of its favorite ideas for 2024 on Friday. The firm cited its “attractive valuation among U.S.” peers and noted that it has the most defensive attributes in the case of a downside. XOM 3M mountain Exxon, 3 months Six other energy companies were featured on the oversold list, including Occidental Petroleum , Coterra Energy , APA and Diamondback Energy . Out of all the energy stocks, Diamondback had the highest 14-day RSI of 23.0. Nearly three-quarters of analysts rate it a buy, according to FactSet. The stock is up around 9% for the year, and the average price target set by analysts imply shares could gain an additional 25.3%, but the shares became oversold following a 3% slide this week. Other nonenergy stocks that were oversold this week include Starbucks , FactSet Research Systems and GE HealthCare Technologies . Some overbought stocks that may soon experience a cooling are aircraft maker Boeing and Kraft Heinz . Boeing has a 14-day RSI of 95.92, while Kraft Heinz has a 91.56 reading. Shares of Kraft Heinz are up 2% this week and 9% in the past month. Analysts believe Kraft Heinz shares have room for only 3.8% appreciation from where they last closed. BA 3M mountain Boeing, 3 months Boeing shares jumped more than 2% Friday after UBS named the company as one of its top picks in 2024. Shares are 27% higher for the quarter. Fundamental analysts agree with the technicals that a cooling is in order. The consensus analyst forecast is for only 5% additional upside potential from current levels. — CNBC’s Fred Imbert contributed reporting.
[ad_2]
Source link
