Berkshire Hathaway is one of the most overbought stocks on Wall Street. Here are the others
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Shares of Warren Buffett ‘s Berkshire Hathaway reached a 52-week high Friday — but the stock may soon experience a pullback, according to one popular metric. The stock has jumped 8.7% this month alone adding to a 17% year-to-date rise. Megacap chipmaker Nvidia ‘s blockbuster earnings announcement on Wednesday powered the market to new highs. The S & P 500 broke the 5,100 for the first time on Friday, and ended the week 1.7% higher. The Dow Jones Industrial Average also reached a fresh record, and is up 1.3% for the week. The tech-heavy Nasdaq Composite has added 1.4% for the period. However, certain stocks are overbought and may soon experience a downturn. Using the CNBC Pro Stock Screener tool, we screened for the most overbought and oversold names in the S & P 500 based on their 14-day relative strength index, or RSI. Stocks with a 14-day RSI greater than 70 are considered overbought, meaning they could be at risk of a pullback. A high RSI typically indicates over-enthusiasm around a stock. On the other hand, stocks with a reading lower than 30 typically have been oversold and could soon rebound. A low RSI is usually associated with negative sentiment around a company Here are some of the most overbought names: Berkshire Hathaway shares were among the most overbought stocks in the week leading into its Saturday earnings announcement, jumping nearly 3% this week. The stock recorded a 14-day RSI reading of 82.2. Ahead of the report, analysts, who are bullish on the stock, predicted there was room for additional gains of about 4.8%. General Electric is one of the most overbought names in the S & P 500, with a 14-day RSI of 87.3. The stock is up 2.8% over the past week alone, and has rallied 20% in 2024. Earlier in February, GE’s Vernova Nuclear Fuel business received approval from the U.S. Nuclear Regulatory Commission to develop nuclear fuel. The company is planning to spin off the Vernova business in April. Although analysts on average have a buy rating on the stock, their consensus price target suggests the stock could fall around 1.6% from its current level. GE YTD mountain GE shares in 2024 Investors may also be getting too bullish on Ralph Lauren . The clothing retailer, which has a 14-day RSI score just under 84, has added 4.2% over the past week. However, analysts estimate shares will drop about 1%. Other overbought names include Leidos Holdings and Juniper Networks . There are also some stocks that could soon experience a rebound. Here are the S & P 500’s most overbought stocks: Software company Palo Alto Networks has had a difficult week. The stock has plummeted nearly 23% after the company issued weaker-than-expected revenue and total billings guidance for the full year. Palo Alto Networks now has a 14-day RSI score of 28.7. Analysts remain hopeful and estimate shares could bounce back more than 25%. PANW 1M mountain Palo Alto Networks shares in February Streaming and entertainment giant Paramount is another name on the oversold list. Shares have dropped 6.6% over the past week. Credit rating agency S & P Global Ratings put Paramount on a watch for a credit downgrade, citing concerns about the “ongoing deterioration of the linear television ecosystem” and how that might reduce the company’s free cash flow. Paramount has a 14-day RSI of 29. Analysts are staying to the sidelines on the media company; however, the consensus price target implies nearly 23% upside potential. Other oversold names include Akamai Technologies , Deere & Co and Newmont .
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