A
major
market
rotation
has
left
some
stocks
more
vulnerable
to
a
pullback,
even
though
the
broader
market
is
down
for
the
week.
The
S
&
P
500
has
dropped
nearly
2%
for
the
week,
putting
the
broad-market
index
on
pace
for
its
worst
weekly
performance
since
April.
The
tech-heavy
Nasdaq
Composite
has
lost
about
3.7%,
poised
to
snap
a
coming
in
six-week
winning
streak,
while
the
Dow
is
about
0.7%
higher.
Those
moves
come
as
traders
rotate
out
of
major
tech
names
in
favor
of
small
caps
and
cyclical
stocks
that
could
benefit
from
Federal
Reserve
interest
rate
cuts.
The
small
cap-focused
Russell
2000
has
climbed
1.8%
this
week.
This
market
shift
has
pushed
some
S
&
P
500
stocks
into
overbought
territory
despite
the
index’s
decline.
Against
this
backdrop,
CNBC
Pro
screened
for
the
most
overbought
and
oversold
names
in
the
S
&
P
500
based
on
their
14-day
relative
strength
index,
or
RSI.
A
stock
with
a
14-day
RSI
greater
than
70
is
considered
to
be
overbought
and
at
risk
of
a
pullback.
An
RSI
reading
lower
than
30,
on
the
other
hand,
means
a
stock
is
oversold
and
could
make
a
short-term
comeback,
given
possibly
worsening
sentiment
surrounding
the
name.
Take
a
look
at
some
of
the
overbought
names:
Ford
Motor
made
the
overbought
list,
with
the
stock
scoring
an
RSI
of
about
83.2.
Shares
could
drop
3.9%
over
the
next
year,
however,
according
to
analysts’
average
price
target.
Ford
shares
are
up
16.4%
this
year
and
reached
a
52-week
high
on
Thursday.
As
traders
anticipate
central
bankers
to
cut
interest
rates
beginning
in
September,
they’ve
rotated
into
companies
like
Ford
on
the
hope
that
lower
interest
rates
on
car
loans
could
boost
consumer
demand
for
vehicles.
Already,
the
automaker
is
facing
high
demand
and
announced
this
week
that
it
is
investing
$3
billion
into
ramping
up
its
Super
Duty
truck
production.
Information
management
services
company
Iron
Mountain
is
also
overbought,
with
an
RSI
of
78.62,
and
is
at
risk
of
the
biggest
pullback
of
the
list,
of
about
10.6%.
This
year,
shares
have
soared
more
than
39.8%
as
the
real
estate
investment
trust
has
garnered
attention
from
investors
for
its
AI
data
center
buildouts.
Goldman
Sachs
reiterated
its
buy
rating
on
Iron
Mountain
in
a
June
note,
citing
its
“significant
expansion
strategy
in
its
data
center
business
globally,
fueled
in
large
part
by
Gen
AI.”
The
company
has
signed
an
increasing
number
of
hyperscaler
clients
since
2020,
which
often
have
larger
eases,
better
credit
and
longer
contract
durations
that
average
between
12
and
15
years,
the
bank
said.
Another
real
estate
name,
Prologis
,
is
also
overbought.
Shares
are
down
7.4%
for
the
year
but
have
popped
more
than
9%
over
the
past
month.
The
stock
can
add
8.8%
over
the
next
year,
according
to
analysts’
consensus
price
target.
Despite
this
momentum,
Prologis
is
at
risk
of
a
near-term
pullback
given
its
high
RSI.
Analysts
are
cautiously
optimistic
on
the
company’s
recovery
timeline,
but
enthused
by
its
second-quarter
earnings
beat
that
reflected
a
pickup
in
leasing
activity
and
strong
core
operations.
Other
overbought
stocks
include
S
&
P
Global
and
Republic
Services.
Here’s
a
list
of
the
most
oversold
names
in
the
broader
market,
meanwhile:
Domino’s
Pizza
made
the
cut
with
a
22.4
RSI
and
an
average
price
target
that
suggests
shares
can
jump
nearly
29%.
That
would
mark
a
major
comeback
for
the pizza
chain,
which
plunged
about
16.9%
this
week
after
reporting
mixed
second-quarter
financial
results.
Domino’s
posted
earnings
that
came
out
above
analysts’
expectations
but
revenue
that
was
in
line
with
estimates.
The
company
also
reported
its
U.S.
comparable
store
sales
grew
slightly
less
than
forecast,
dragging
the
stock
lower.
Charles
Schwab
could
also
see
a
bounce
after
its
shares
have
lost
nearly
14%
over
the
past
month,
fueled
by
second-quarter
earnings
that
disappointed
Wall
Street
as
the
bank’s
deposits
had
fallen
and
supplemental
borrowing
increased
during
the
period.
Analysts
surveyed
by
LSEG
rate
the
stock
a
buy
and
think
it
has
roughly
24.2%
potential
upside,
however,
suggesting
the
market’s
punishment
has
been
too
severe.
Other
oversold
stocks
include
Walgreens
Boots
Alliance
and
footwear
companies
Nike
and
Deckers
Outdoor
.
