Investors on Wall Street are contending with the latest forward guidance from the Federal Reserve, which has helped underpin an overall losing week for major indexes. Fed Chair Jerome Powell signaled on Wednesday that one more interest rate hike is planned before the end of the year, followed by two cuts in 2024. Powell reiterated that the goal of bringing inflation back down to its 2% target still has “a long way to go.” His comments stoked investor concern that borrowing costs will remain higher for longer. CNBC screened FactSet data to examine what equities traders are betting on, or fleeing, as macroeconomic uncertainty continues. The relative strength index (RSI) measures the strength and speed of stock price moves, and is a useful measure of whether stocks are either overbought or oversold. A 14-day RSI reading below 30 can indicate an buying opportunity, while a rating above 70 could point toward a pullback. Aerospace behemoth Boeing is exceptionally oversold with a 14-day RSI of 2.5. Nearly 54% of analysts polled by FactSet maintain a buy rating on Boeing stock, and their average price targets imply about 26% upside. Boeing stock is up nearly 4% year to date. CFRA downgraded Boeing shares to hold on Friday, citing a number of quality control issues it is facing that could hurt the company’s delivery schedule. Elsewhere, discount retailer Dollar Tree also made the oversold list with a 14-day RSI of 10.7. Roughly 41% of analysts polled by FactSet rate Dollar Tree stock as a buy, with their average forecasts implying 46% upside. Dollar Tree stock is down 26% year to date. Shares have been under pressure since the retailer provided investors with a disappointing profit forecast after reporting quarterly results in August . Overbought names The most overbought stock on Wall Street is managed care company Molina Healthcare , with a 14-day RSI of 87.4. The company provides health care largely through government programs including Medicare and Medicaid. More than 41% of analysts polled by FactSet rate shares as a buy, with an average forecast implying 4.6% upside. Shares of Molina have been trending higher over the past three months with a 16% gain. The company will report third-quarter results on Oct. 25. The broader field of health-care stocks have been under pressure for much of 2023 , with investors seemingly signaling a weaker appetite toward the sector as recession fears persist and interest rates climb. Still, health-care names like Humana and McKesson ranked among the most overbought stocks on Wall Street with 14-day RSI readings of 77.8 and 76.9, respectively. Average analyst forecasts complied by FactSet imply roughly 18% upside for Humana and 9% for McKesson.
Sumber: www.cnbc.com
