It may be time to buy shares of Tesla as a popular metric on Wall Street indicates shares could be ripe for a rebound. The broader market has struggled this week thanks to broad declines in tech-related names, including Tesla. Week to date, the S & P 500 is 0.2% lower, while the Dow Jones Industrial Average has lost 0.1%. The tech-heavy Nasdaq Composite has pulled back by 0.8%. That said, the sell-off in some individual names may have gone too far. Using the CNBC Pro Stock Screener tool, we looked for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, otherwise known as their RSI. Stocks that have a 14-day RSI that is greater than 70 fall into the overbought camp, meaning they could be at risk of a pullback since a high RSI typically indicates that investors are overly optimistic about a stock in a short amount of time. On the other hand, stocks with a reading below 30 are considered oversold and could be ripe for a recovery. Here’s a look at the most oversold names: Shares of Tesla more than doubled in 2023 due to strong revenue and delivery numbers, but the electric vehicle manufacturer has struggled to maintain its footing this year. Muted sales in the China market and a weak artificial intelligence story have contributed to Tesla’s 35% slide in 2024. The stock has slipped 7% in the past week alone. Analysts have a consensus hold rating on Tesla, which has a 14-day RSI of 29.4. But they anticipate about 23% potential upside ahead for the company, which could help it claw back some of its losses this year. Shares fell this week after a Wells Fargo downgrade to underweight from equal weight. Boeing is also on the list of Wall Street’s most oversold names. Plagued by brewing quality control concerns , shares of the plane-maker have fallen 8% this week and 30% this year. The stock has a 14-day RSI reading of 27. Still, sentiment around the stock remains positive, with the average analyst price target implying upside of 40%, according to data from LSEG. BA YTD mountain BA YTD chart Boeing’s woes have led to wider ramifications in the airline industry, including for Southwest Airlines , which exclusively flies Boeing 737s. The stock dipped 18% this week, after Southwest said it was rethinking its 2024 financial guidance , citing delivery delays from Boeing. Shares are now down 3% for the year, but analysts anticipate that the company could have upside of more than 11% ahead. Other oversold names on the list include Amgen and Globe Life . CNBC also found some stocks that could soon experience a pullback. Here are the S & P 500’s most overbought stocks: Dupont De Nemours was among the most overbought names, with its stock recording a 14-day RSI reading of 78. Analysts, who generally have a hold rating on the name, predict the stock could edge 1% higher. Dupont De Nemours has slipped 4% this year but are up 3% this week. Likewise, Targa Resources found itself on the list of most overbought names in the S & P 500, with a 14-day RSI of 77.4. The stock is up 2% this week and has soared an eye-watering 22% in 2024. Analysts on average have a buy rating on shares of Targa, with their consensus price target suggesting the stock could rise 3% from here. TRGP YTD mountain TRGP YTD chart Investors may also be getting too bullish on Garmin . The technology firm, which has a 14-day RSI just under 80, has added 4% this past week and 14% this year. However, analysts estimate shares could drop around 13%. Other overbought names include Waste Management and Devon Energy . DISCLOSURES: THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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