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LivestreamMenuStocks closed out a turbulent week on a positive note, but a couple of winning names could soon see a decline. Volatility defined this shortened trading week, with stocks rising on both Monday and Tuesday, boosted by a potential peace deal between the U.S. and Iran . On Wednesday, fears of a potential rate hike in 2026 sent stocks lower. The major averages bounced on Thursday, with all three indexes ultimately ending the week higher. Still, investors preferred to pile into several individual stocks this week, pushing them into overbought territory. CNBC Pro used its stock screener tools to identify such names based on their 14-day relative strength index, or RSI. Stocks with a 14-day RSI reading above 70 are considered overbought, meaning that they may soon see a pullback. On the other hand, a result below 30 indicates that a stock is oversold and that a rebound could be on the horizon. The following table shows this week’s most overbought names: Semiconductor play Applied Materials and memory stock Western Digital were both among this week’s most overbought names. Applied Materials gained almost 9% this week and ended with an RSI of 77, while Western Digital clocked a nearly 33% advance and RSI of 78. Both names moved higher after President Donald Trump said in a Truth Social post that Intel had struck a deal with Apple to design and build chips in the United States. Applied Materials also benefited after Citi reiterated the name as a buy rating this week, and raised its price target to $710. This updated forecast implies an upside of 15% from where shares ended on Thursday. Citigroup and Morgan Stanley were also among this week’s most overbought names. The stocks rose 2% and 4% this week, respectively, and notched respective RSIs of 75 and 74. On Thursday, Morgan Stanley and Citigroup touched new 52-week highs. Earlier in the week, Wells Fargo reiterated its overweight rating on shares of Citigroup, and raised its price target to $165 from $162. This revised forecast corresponds to an upside ahead of 15%. “This is a ‘different Citi’ that’s focused on ‘durability, accountability, and execution’ as discussed in Mtg w/CEO After Investor Day: A New Era for Citigroup. Its script is to ‘under-promise and over-deliver,’ and we have an upward bias to [estimates],” wrote Wells Fargo bank analyst Mike Mayo. On the other hand, stocks in oversold territory this week included Accenture, which was down almost 25% in the period with an RSI of 23. Shares tumbled about 18% Thursday after the global professional services company announced it agreed to acquire asset intelligence company runZero and device and software supply chain security company NetRise, as well as a majority stake in cybersecurity company Dragos. The deal’s combined enterprise value comes in at approximately $4.175 billion. Investors were also left disappointed after Accenture’s fiscal third-quarter revenue came in at $18.72 billion, below the $18.78 billion analysts polled by FactSet were looking for. The company’s new bookings for the period came in at $19.3 billion, compared to $19.7 billion last year. Earlier in the week, Morgan Stanley downgraded Accenture to an equal weight rating. “Downgrading ACN to EW as AI spend rationalization has not played out, the interest rate environment is less supportive for budget growth, and acquisitions become increasingly expensive,” wrote analyst James Faucette. “We still view Accenture as well positioned for an eventual recovery, given its scale, enterprise relationships, and exposure to large transformational programs, though the timing of any reacceleration remains increasingly uncertain.” Faucette’s new price target of $177, down from $240, is approximately 38% higher than where shares closed on Thursday. Fox Corporation, down more than 20% this week, was another one of the most oversold names. The media giant ended the week with an RSI of 26. Shares sunk this week after Fox announced it was acquiring Roku for $160 per share , or roughly $22 billion. The company said it obtained a $12 billion loan for the transaction, and that it plans to fund the cash portion of the cash-and-stock deal with a combination of both new debt and cash on hand.Read More
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