These stocks, including Oracle, are among the most overbought on Wall Street
Several stocks could soon be due for pullbacks after seeing sizable gains this week, according to a widely-used technical indicator. Stocks took a hit Friday after Israel launched a series of airstrikes on Iran in the largest attack on the Islamic Republic since the Iran-Iraq war in the 1980s. Following Israel’s attack, which killed at least three of Iran’s senior military leaders, Iran launched more than 100 drones toward Israel. The attacks sent investors out of stocks and into safe-haven assets like the U.S. dollar and gold, both of which rallied Friday. The S & P 500 finished Friday’s session down more than 1%, making the week-to-date loss 0.4%. The Nasdaq Composite and the Dow Jones Industrial Average also finished in the red for the period, posting a loss of 0.6% and 1.3%, respectively, on the week. Using the stock screener tool , CNBC Pro looked for the most overbought and oversold stocks by measuring their 14-day relative strength index, or RSI. An RSI reading above 70 can indicate that a stock may be overbought and move lower in the near term, while an RSI below 30 might signal that a stock is oversold and see a future move higher. Oracle was the most overbought stock in the S & P 500 this past week, with an RSI around 90.4. Shares of the software maker rose almost 8% on Friday, reaching an all-time high and extending Thursday’s 13% rally. Over the course of the entire week, Oracle surged 24%. Analysts surveyed by LSEG have an average price target on the stock of around $205, implying almost 5% downside from Friday’s closing level, although many of those targets may rise in the wake of Oracle’s latest earnings this week. Most of the week’s gains came after Oracle’s fiscal fourth quarter results topped Street estimates. CEO Safra Catz said cloud infrastructure revenue is expected to rise more than 70% in fiscal 2026, adding that the fiscal year “will be even better as our revenue growth rates will be dramatically higher.” Micron Technology also showed up among the most overbought stocks, with an RSI of 85.1. Shares jumped more than 6% over the past week, its third straight weekly gain, putting its year-to-date gain at more than 37%. The stock was marginally lower on Friday, snapping a nine-day advance. Thursday, Micron announced plans to invest about $200 billion in U.S. semiconductor manufacturing in a move that will create 90,000 direct and indirect jobs. J.M. Smucker was on the week’s oversold list, with an RSI around 27. Though most Wall Street analysts rate the peanut butter and jelly maker no more than a hold, according to LSEG ,the consensus price target of $113 implies more than 18% upside from Friday’s close. Shares came under pressure in the past week, falling 14%, after fiscal fourth-quarter revenue of $2.14 billion missed the $2.18 billion that analysts polled by FactSet had expected, though earnings topped estimates. Smucker’s full-year earnings guidance also missed Street expectations. The stock has now fallen in seven out of the past eight weeks. PG & E shares fell 13% this week, its fourth straight weekly decline, and the California utilility now has an RSI of 20.6. The stock has taken a beating this year, tumbling 32% compared to 1.6% rise in the S & P 500.
