Cisco is the most overbought stock in the S&P 500. Here are the others.
As earnings season continues, investors have opportunities to profit off the big bounces — or avoid the pullbacks — in stocks in the wake of these quarterly reports. It’s been a volatile week. The S & P 500 rallied to a record intraday high of 7,501.24 on Thursday as the first-quarter earnings season continued to prove strong. However, the broad-market index gave up some of those gains in Friday’s session, with tech stocks falling sharply, as investors were left underwhelmed by the outcome of the U.S.-China summit. Despite these moves, Cisco shares tallied a 22% one-week gain in the wake of blowout earnings , putting the stock into overbought territory. A stock qualifies as overbought when its relative strength index is greater than 70. The names in this category could be due for a pull back in the near term. Conversely, some names ended the week in oversold territory. Oversold stocks have RSIs below 30, potentially priming them for a near-term rebound. Here are some of the most overbought and oversold S & P 500 names from the past week. Overbought Cisco’s stock has a RSI of 90, putting it at the top of this week’s list. The software and artificial intelligence infrastructure firm posted better-than-expected fiscal third-quarter results on Wednesday and offered a bullish outlook for its fourth quarter. Investors were excited to see robust orders for its AI offerings, and the company received stock rating upgrades from HSBC and other shops on the Street. Other names on the overbought list include Humana , Palo Alto Networks and CVS Health . Oversold Zoetis topped the oversold list with an RSI of 14.4. The animal health firm’s shares have shed 10% over the past week. The stock is trading at its lowest level since 2019 after reporting on May 7 weaker-than-expected earnings for the first quarter . Zoetis also lowered its earnings per share and revenue guidance for the current fiscal year, underwhelming investors. The company said pet owners are feeling price pressure and cutting back on trips to the vet. When they do go, they are often opting for less expensive products, which is hurting demand for Zoetis’ more premium medications. Domino’s Pizza and Lululemon Athletica are among the other names on the oversold list that could be due for a bounce back. —CNBC’s Christina Cheddar Berk contributed to this report.
