This
week’s
market
sell-off
breaks
a
winning
streak
for
the
S
&
P
500
—
but
it
also
presents
opportunities
for
investors
to
gain
exposure
before
a
potential
rebound.
All
three
major
averages
are
on
pace
for
losses
on
the
week,
even
as
Friday’s
reading
of
the
Federal
Reserve’s
preferred
inflation
gauge
was
in
line
with
expectations.
The
S
&
P
500
and
the
Nasdaq
Composite
are
both
on
pace
to
snap
five-week
winning
streaks,
while
the
Dow
Jones
Industrial
Average
is
tracking
for
back-to-back
weekly
losses.
Dow
member
Salesforce
dropped
about
19%
during
the
week,
which
made
it
the
most
oversold
stock
in
the
market.
Investors
sold
off
the
stock
after
the
company
reported
a
revenue
miss
and
weak
guidance
on
Wednesday.
With
this
in
mind,
CNBC
Pro
screened
for
the
most
overbought
and
oversold
stocks
on
Wall
Street
as
measured
by
their
14-day
relative
strength
index,
or
RSI.
Stocks
with
a
14-day
RSI
below
30
are
considered
oversold,
suggesting
shares
may
be
due
for
a
comeback.
On
the
other
hand,
a
14-day
RSI
higher
than
70
indicates
a
stock
is
overbought
and
may
soon
pull
back.
The
weekly
data
below
is
current
as
of
9:38
a.m.
ET
Friday.
Salesforce
has
a
14-day
RSI
of
16.4.
Year
to
date,
the
stock
is
down
13%.
Shares
fell
roughly
20%
alone
on
Thursday.
Although
Salesforce’s
quarterly
results
disappointed
investors,
many
Wall
Street
analysts
remain
optimistic
about
the
stock
and
its
artificial
intelligence-related
prospects,
maintaining
a
consensus
buy
rating.
Goldman
Sachs
said
the
company
is
“an
under-appreciated
Gen-AI
winner,”
with
Morgan
Stanley
also
underscoring
the
future
benefits
from
AI.
Shares
are
forecasted
to
surge
more
than
37%
from
here,
according
to
analysts
surveyed
by
LSEG.
Biopharmaceutical
company
Bristol-Myers
Squibb
was
the
second-most
oversold
stock
of
the
week.
Shares
have
fallen
more
than
2%
week
to
date,
and
they
are
off
about
20%
in
2024.
Analysts
have
a
consensus
rating
of
hold
on
the
stock.
The
company
is
undergoing
a
$1.5
billion
cost-cutting
initiative
by
2025,
which
it
plans
to
execute
through
layoffs,
role
consolidation,
discontinuation
of
some
drug
programs
and
other
cost-saving
measures.
According
to
the
average
price
target
on
Bristol-Meyers
Squibb,
shares
could
rally
more
than
29%.
Here
are
some
of
the
most
overbought
stocks
of
the
week:
Tech
company
HP
has
surged
17.1%
this
week,
making
it
the
most
overbought
stock
with
an
RSI
reading
close
to
90.
The
company
reported
an
earnings
and
revenue
beat
in
its
fiscal
second
quarter
on
Wednesday.
Although
half
of
the
analysts
covering
HP
rate
the
stock
as
either
a
strong
buy
or
buy,
it
may
not
be
able
to
sustain
its
rise.
The
consensus
analyst
price
target
implies
shares
will
fall
more
than
5%
from
current
levels.
Shares
fell
more
than
6%
Friday,
but
they
are
up
about
20%
year
to
date.
HPQ
YTD
mountain
HP
stock
in
2024
Ralph
Lauren
is
another
overbought
name
which
rose
almost
7%
for
the
week.
The
company
has
an
RSI
reading
of
76.9,
and
analysts
see
more
than
3%
upside
from
here.
The
apparel
company’s
fiscal
fourth-quarter
earnings
topped
analysts’
estimates.
The
company
also
announced
a
10%
increase
in
its
dividend.
Shares
are
nearly
14%
higher
in
May,
and
they
are
up
close
to
30%
in
2024.
