Wall Street is under pressure this week, but the selling in some individual names may have gone too far. The benchmark S & P 500 is on pace for its worst weekly performance in more than a year, losing more than 4%. Technology stocks were noticeably weak as investors pared exposure to the sector, pulling down the Nasdaq Composite more than 2%. A sluggish August jobs report also weighed on an already jumpy market susceptible to any sign of an economic growth slowdown. Some stocks may be due for a short-term bounce. Using the CNBC Pro Stock Screener , we looked for stocks that are oversold, based on their 14-day relative strength index, or RSI. A reading below 30 typically indicates shares are oversold and could be due for a bounce. A measure above 70 signals shares are oversold and could face downside ahead. Super Micro Computer is among the most oversold stocks on the Street with an RSI of roughly 23. Shares have been under pressure recently after the company said its annual 10-K filing would be delayed. Adding further pressure to the stock was a late August report that Hindenburg Research now has a short position in Super Micro Computer over allegations of “accounting manipulation.” Analysts remain positive on the stock, with their average price targets implying more than 112% upside, per FactSet. Over the past week, the stock is down more than 11%. Still, it is up more than 36% for the year. Dollar General also made the oversold list, with an RSI of about 20. The stock has shed 34% since Aug. 29, when the company slashed its full-year outlook and reported disappointing second-quarter results. Executives blamed a more spending-conscious and cash-strapped consumer. Year to date, shares are down nearly 40%. DG DLTR YTD mountain Both discount retailer stocks have been under pressure in 2024. Dollar Tree has similarly hit a rough patch, with shares slipping more than 52% in 2024. The company also trimmed its full-year outlook this week and missed second-quarter estimates. Executives noted especially week discretionary spending numbers throughout the quarter. There are some stocks this week that are overbought and could be due for a pullback. Some of the most overbought names on Wall Street include Clorox and General Mills , with 14-day RSI readings of 86 and 81, respectively. Clorox raised its full-year earnings outlook last month after reporting a quarterly profit and revenue beat. Year to date, shares are 16% higher. Elsewhere, General Mills restated its full-year 2025 financial targets on Tuesday. The stock is up 15% in 2024.
Original news source Credit: www.cnbc.com
Business News, Clorox Co, Dollar General Corp, Dollar Tree Inc, General Mills Inc, Investment strategy, Markets, Super Micro Computer Inc
Super Micro among most oversold names on the Street. Here are others added by News89 Team on
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