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Wall Street is wrapping up a tough month. However, some buying opportunities may be emerging. The S & P 500 is on pace to end September lower by 4%, which would mark its worst monthly performance of 2023. The Nasdaq and Dow Jones Industrial Average are also headed for steep one-month losses. Each of the three indexes are also on pace to notch their second negative monthly performance in a row for the first time since September 2022. Given this backdrop, CNBC Pro used FactSet data to screen for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. A stock with a 14-day RSI greater than 70 is considered to be overbought and at risk of a pullback. Conversely, a reading lower than 30 typically means a stock is oversold and could be a signal of a possible buying opportunity. Here are some of the most oversold names: MGM Resorts has a 14-day RSI of 7.02, with about 64% of analysts rating the stock a buy. Shares of the global casino chain have added 11.1% this year, but have seen a 15.3% loss in September after MGM was hit with a series of cyberattacks that resulted in a 10-day computer shutdown. The company could also be affected by this week’s move from the Culinary Workers Union, a union of tens of thousands of Las Vegas hospitality workers that voted to authorize a strike Tuesday as they bargain for better benefits and working conditions with employers such as MGM and Wynn Resorts. Still, analysts think the stock can make a comeback, projecting more than 55% upside to MGM over the next 12 months based on the average price target. That’s the highest expected upside on the list. MGM YTD mountain MGM in 2023 Realty Income is the most oversold company in the S & P 500, scoring the lowest RSI of the lot at 5.19. The real estate investment trust has a consensus price target implying roughly 34.4% upside, and just under half of Wall Street analysts covering the stock rate it a buy. Shares have taken a roughly 21% dive this year. Wells Fargo last week initiated the stock with an equal weight rating, projecting 10% upside from its $59 price target. Netflix is also oversold, with an RSI of 10.98. The streaming giant has an upside of 20.9%, according to FactSet, and 50% of analysts rate it a buy. It has fared well despite the Hollywood writers’ strike this year, with the stock still 28% higher in 2023. Other oversold stocks include Boeing , discount retailer Dollar General and cloud software company Salesforce . Meanwhile, the following 10 stocks are the most overbought in the S & P 500 — and many of them are insurance companies. Travelers Companies is the most overbought stock in the broad-based index with an RSI of 79.89. Just one-quarter of analysts rated the company a buy, with the average price target implying a 16.7% upside. Its shares have gained 12.2% this year and are up 2% for the month. Insurance firm Chubb is another highly overbought name. Just above 62% of analysts rate the stock a buy. The company’s average price target suggests shares could gain 14.7%. Chubb’s stock has climbed back from its yearly losses and is up 8.8% this quarter. The company also offers an annual dividend of $3.44 per share.’ Big-name health-care and insurance company UnitedHealth Group , with a market cap of $469.26 billion, has a 14-day RSI of 75.54. The stock has gained 5.4% this quarter, recovering from year-to-date losses of 4.5%. Pharmaceutical distributor McKesson , as well as insurance companies Humana , Centene and Arch Capital Group , are also among the most overbought companies in the S & P 500.
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