Overbought and Oversold Stocks September 2024: With the S&P 500 nearing its peak price ever reached, some shares might have skyrocketed before their time. The latest surge in values of indices like the Nasdaq-Composite that went up to 5.8% within just one week and Dow Jones Industrial Average being up by 2.5% calls for an analysis on which stocks are likely to be overvalued. By employing a 14-day Relative Strength Index (RSI), we could find overbought shares likely to retrench and those suffering from low sales suggesting a potential recovery.
Table of Contents
What is RSI and Why Does It Matter?
RSI is a momentum oscillator used to measure the rate of change in price over time. It indicates if a stock is oversold or bought too much generally. When:
- A value greater than seventy signifies that the asset is overbought and might need correcting;
- A value below thirty means that the asset is oversold, hinting at possible rebounds.
Keeping this in mind, below are the shares that were regarded as either overbought or oversold this week.
Overbought and Oversold Stocks September 2024
Most Overbought Stocks This Week
| Symbol | Company | RSI | Analyst Consensus | Price Target + / – |
| K | Kellanova | 87.87 | Hold | -1.95% |
| VTR | Ventas Inc | 85.11 | Buy | -3.2% |
| WELL | Welltower Inc | 82.44 | Buy | -5.13% |
| UDR | UDR Inc | 82.2 | Buy | -4.29% |
| WMT | Walmart Inc | 81.75 | Buy | +1.03% |
| COO | Cooper Companies Inc | 80.24 | Buy | +3.13% |
| PSA | Public Storage | 79.71 | Buy | -5.94% |
| ORCL | Oracle Corp | 79.69 | Buy | -1.66% |
| CLX | Clorox Co | 78.83 | Hold | -9.24% |
| KVUE | Kenvue Inc | 78.63 | Hold | -4.2% |
Walmart (WMT) – Retail Giant Reaches New Heights
Retail giant Walmart Inc. (WMT) comes first on the list with an RSI of 81.75 which is considered overbought. Nevertheless, analysts are positive with a ‘buy’ consensus and hence a target price of 1% shows that its peak might have already been reached. In addition,Walmart’s stock has grown at an unbelievable rate attaining an all-time high and gaining 53% since January 1st this year only.
Clorox (CLX) – Could a Pullback Be Coming?
Clorox Co. (CLX) has had an impressive run in recent times, with an RSI score of 78.83. According to data , The bleach and Glad bag maker has seen a rise of almost 25% in the last three months but analysts are still cautious. Most analysts have placed a hold on Clorox while its current price target is 10 percent below its present level which means that there could be a pullback at some point soon. Even though it has gained 16 percent since the beginning of this year investors need to pay attention.
Oracle (ORCL) – Tech Powerhouse on the Verge of Correction?
So far in 2024, Oracle Corp. (ORCL) has been one of the best performing stocks, with a RSIs at 79.69. This stock has been among the preferred ones in the technology industry but some critics have raised some alarms about its unexpected rise. Despite the price target indicating a possible decline of about 1.66%, which means it may have reached the top, the analysts still recommend ‘buying’ it.
Kenvue (KVUE) – Health and Wellness Juggernaut
As another offspring from Johnson & Johnson, Kenvue Inc. (KVUE), is likewise in the overbought area with an RSI of 78.63. Kenvue’s stock price may need to take a breath after increasing by 29% over three months. The analysts are divided; half suggest “holding”, while the other half talk against any rush as they show an average price target that indicates 4.2% drop in demand turn.
Overbought and Oversold Stocks September 2024
Most Oversold Stocks This Week
On the other hand, there are stocks that have been undervalued by the market and therefore may be setting up for an upswing. These companies have their RSI less than 30 which indicates that the market could have unfairly treated them.
| Symbol | Company | RSI | Analyst Consensus | Price Target + / – |
| HAL | Halliburton Co | 22.55 | Buy | +56.98% |
| APA | APA Corp (US) | 23.94 | Hold | +59.15% |
| OXY | Occidental Petroleum Corp | 24.39 | Hold | +37.59% |
| DLTR | Dollar Tree Inc | 24.67 | Hold | +20.1% |
| DG | Dollar General Corp | 24.81 | Hold | +21.25% |
| MRNA | Moderna Inc | 25.48 | Hold | +75.94% |
| HUM | Humana Inc | 25.67 | Buy | +21.46% |
| SLB | SLB | 25.87 | Buy | +62.97% |
| WBA | Walgreens Boots Alliance Inc | 27.23 | Hold | +30.59% |
| BBWI | Bath & Body Works Inc | 27.37 | Buy | +57.7% |
Halliburton (HAL) – Energy Sector Dragged Down
With oil prices slumping to a near three-year low, Halliburton Co. (HAL) has been wounded badly, as it stands with an RSI of 22.55 making it one of the most oversold stocks globally. Nonetheless, there is massive upside potential as analysts expect a price advance of 56.98% over the next twelve months. This week, out of all sectors in the S&P 500 index, only energy has lost value and investors might find this period suitable to buy cheap Halliburton shares.
Moderna (MRNA) – Vaccine Maker in Trouble?
In 2024, Moderna Inc. (MRNA) has had a 32% fall, having an RSI of 25.48. It continued to decrease as JPMorgan cut out its recommendation for the company, which caused it to also make reductions in forecasted income. Nevertheless, the concerning aspect is that despite this decline in terms of prices and revenues; an upturn of about 75.94% is being projected by some analysts thus making it a possible turnaround story. Nonetheless, analysts are divided on their opinions regarding whether or not they trust this company; most of them advised holding the share stocks.
Occidental Petroleum (OXY) – A Bounce on the Horizon?
The company Occidental Petroleum Corp. (OXY) has RSIs of 24.39, placing it well within the oversold area. In recent weeks the energy stocks have suffered seriously, but experts forecast that over the following year Occidental may rise almost 38% from this point. Possibly, OXY may turn out to be an important buying opportunity for those who are ready to tolerate fluctuations.
Conclusion – Are Overbought Stocks Headed for a Pullback?
S&P 500 hit an all-time high recently, and this has resulted in some stocks being overbought which could be a cause for potential short-term pullbacks. On the one hand, Walmart, Clorox and Oracle have made huge profits but their high RSI levels suggest they are overdue for a correction. On the other hand, oil and gas have been battered down completely thus Halliburton and Occidental Petroleum are too low-priced making them ideal candidates to rebound. An individual investor needs to decide if he/she should go along with such incredibly priced up trends or try searching within areas that are underpriced in relation to other segments of the market that can benefit more than others.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
