Even after this week’s decline for the S & P 500, there are some stocks deep in overbought territory. The S & P 500 lost more than 1% for the week, snapping a five-week winning streak. The move comes as investors appear to book some profits following a massive rally stoked by enthusiasm over artificial intelligence and hope that the U.S. can avoid an economic recession. That said, a look at the relative strength index of many stocks in the index shows investors may want to trim their holdings in some other names as well. A stock is considered overbought if its 14-day RSI goes above 70, signaling investors should consider easing their exposure. A 14-day RSI under 30, however, signals that a stock is oversold, meaning there may be a buying opportunity. Here’s a look at the most overbought stocks in the S & P 500. Johnson & Johnson is the most overbought stock in the index with 14-day RSI of nearly 92. The stock rose about 1% this week — bucking the broader market trend. Most analysts aren’t optimistic on the shares, with only 26% rating them a buy. That said, Morgan Stanley’s Terence Flynn noted that its immunology drug JNJ-2113 could “be an underappreciated pipeline driver for JNJ and under a bull case scenario become a $5bn+ drug at peak for the company.” Airlines Delta and Southwest also made the list, along with cruise operators Royal Caribbean and Carnival . All four stocks have RSIs of more than 83, though analyst consensus for each name varies. DAL YTD mountain DAL in 2023 For Delta, more than 85% of analysts have a buy rating on it. Meanwhile, more than half of those covering Royal Caribbean have buy ratings on the company. Only 4 in 10 analysts rate Southwest and Carnival as buy. To be sure, there are some stocks deep in oversold territory, meaning they may be due for a bounce. Here’s a look at the S & P 500 stocks with the lowest 14-day RSI. Akamai Technologies is the most oversold stock on Wall Street, with an RSI of just under 12. The cybersecurity name lost more than 3% this week and is down nearly 4% for the month. Analysts, however, aren’t keen on the stock. Only one-third of those covering Akamai rate it a buy, and the average analyst price target implies upside of just 7% over the next 12 months. Solar stocks Enphase Energy , SolarEdge Technologies and First Solar also made the cut, with 14-day RSIs of 21.8, 16.7 and 20.9, respectively. All three stocks have gotten crushed in the second quarter, losing more than 15% each. Enphase and SolarEdge are also down for the year. First Solar, meanwhile, is still up 23% in 2023. That said, analysts are bullish on the three solar names, receiving buy ratings from more than 60% of those covering them. — CNBC’s Michael Bloom contributed reporting.
