Ulta Beauty is underperforming and has sold off in recent weeks, but data shows it may be due for a bid higher. Shares in the cosmetics seller have the lowest average relative strength index, or RSI, in the S & P 500 in the past 14 days, meaning it is the most oversold in that time period. An RSI reading below 30 can indicate a stock has fallen too far and is at a price that may prove a good buying opportunity. Conversely, an RSI over 70 means it may be overbought and due for a retreat. Ulta has lost around 1.5% so far in August, extending July’s 5.5% slide. Year-to-date, the stock has dropped more than 6.52%. But Wall Street sees a rally in Ulta’s future, with the average price target suggesting 23% upside for the stock over the next year, according to FactSet. Slightly less than half of analysts rate the stock a buy. Equifax and HCA were two other companies with extreme RSI readings below 10. Fewer than two in five analysts rate Equifax a buy, and the average analyst expects the stock to rise just over 16% in the next year, per FactSet. The commercial services stock has risen less than 2% since 2023 began. Health-care stock HCA is favored more, with about two-thirds of analysts recommending it as a buy. The average analyst sees more than 18% upside ahead. HCA shares are up 12% this year. The hospital provider reported stronger-than-expected earnings and raised its full-year guidance late last month. HCA also had patient data stolen by hackers and put up for sale earlier in the month. Here’s the full list of oversold stocks: On the other side of the spectrum, Marathon Petroleum was the most overbought stock over the past 14 days of almost 95. Nearly seven out of every 10 analysts rate the stock a buy, with an average price target implying shares could rise nearly 9%, according to FactSet. While the broader energy sector has struggled in 2023 after last year’s outperformance, Marathon has outperformed the S & P 500 with a year-to-date gain of 18.5%. Marathon gave a strong quarterly report on Tuesday, reporting earnings per share of $5.32 on $36.82 billion in revenue. Analysts surveyed by FactSet forecast $4.55 in net income and $32.6 billion in revenue. IBM and Packaging Corporation of America followed, with RSIs both above 90. Both stocks havefewer fans on Wall Street, with only about three out of 10 analysts holding buy ratings on each. Analysts diverge on where the two will go next. The consensus price target among analysts has IBM gaining less than 1% over the next year, while Packaging Corp. could tumble nearly 8%. Both stocks are up on a year-to-date basis, but only the Packaging Corporation is outperforming the broader market. See the full list below:
