After significantly outperforming the broader market this year, shares of General Electric could see a pullback, at least according to one popular chart metric. Stocks have continued their upward march this week as the Federal Reserve left rates unchanged and maintained that cuts are coming this year. The major U.S. averages are on pace to end the week higher, with the Dow Jones Industrial Average on track for its best week since December. The S & P 500 and the tech-heavy Nasdaq Composite are both pacing for weekly gains of more than 2%. Using the CNBC Pro Stock Screener tool, we searched for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. Stocks with an RSI above 70 are considered overbought and may be at risk of falling, while a reading below 30 suggests a stock may be oversold and could be a buying opportunity. Here are some of the most overbought names: General Electric ‘s 14-day RSI of nearly 83 indicates that shares could be overbought. The company is days away from its final spinoff, in which GE will jettison its power business. On April 2 , the entity will begin trading as GE Vernova on the New York Stock Exchange under the ticker “GEV,” and investors are hoping the move will unlock more shareholder value . According to LSEG, formerly known as Refinitiv, analysts still have a consensus buy rating on the stock, but think shares could lose 2.1% based on their average price target. The stock has climbed 38% since the start of the year. The GE Vernova spinoff will mark the final part of the company’s process to break up its operations into three parts: health care, aviation and energy. Several oil and gas names are also overbought, according to their RSI. Valero Energy and Marathon Petroleum each have an RSI of roughly 84, while Marathon Oil and NRG Energy both have an RSI of more than 86. Each of these names are still buy-rated, according to analysts polled by LSEG. Analysts foresee declines for NRG, Valero and Marathon Petroleum, based on their consensus price targets. However, Wall Street anticipates nearly 17% upside for Marathon Oil, according to LSEG. Wells Fargo analyst Roger Read recently kept his overweight rating but upped his price target by $4 to $36 a share, saying lower material costs, faster drilling and well completion efficiencies should lead to lower costs throughout the year, mitigating inflationary pressures for oil companies. Here are the most oversold stocks in the S & P 500: Buy-rated drug company Zoetis could gain a whopping 32.6% over the next 12 months, according to analysts’ average price target, per LSEG. The stock has an RSI of nearly 27, and it has slipped nearly 15% in 2024. Zoetis, a former Pfizer subsidiary that produces medicine and vaccinations for animals, last month reported fourth-quarter adjusted earnings per share that fell short of analysts’ expectations. 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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