These stocks oversold amid the sell-off may be due for a bounce
Stocks that have been under pressure this week could be primed for a rebound. The major averages rose on Friday, attempting a comeback from the prior session’s losses and the Dow Jones Industrial Average’s worst day since March 2023. Despite the recovery attempt, all three indexes are tracking for a losing week. Investors grappled with several catalysts that weighed on sentiment this week, including a sharp spike in oil prices and renewed fears that the Federal Reserve may keep rates higher for longer. Even as stocks have struggled in recent days, a few names may be poised to jump. We used the CNBC Pro Stock Screener Tool to identify companies that are oversold based on their 14-day relative strength index. A reading below 30 suggests a stock may be oversold and present a buying opportunity, while an RSI over 70 suggests a name is overbought and could be due for a pullback. McDonald’s made the cut. Shares have pulled back more than 5% this week and have lost nearly 10% in 2024. The stock is slightly oversold with a 14-day RSI reading of 24.52. Analysts remain optimistic on the stock with 67% of those polled by FactSet rating shares either a buy or overweight, with their average price targets implying more than 21% upside moving forward. MCD YTD mountain McDonald’s stock. The company recently announced a partnership expansion with Krispy Kreme, with plans to sell the doughnuts at its burger chain nationwide by the end of 2026. McDonald’s also said on Friday it intends to purchase all 225 restaurants that make up its Israel franchise. Biopharmaceutical firm Biogen also made the list, with a 14-day RSI reading of 29.71. Shares have pulled back more than 21% in 2024. Back in February, Biogen missed Wall Street’s fourth-quarter estimates , with the company noting lower sales for its multiple sclerosis therapies . BIIB YTD mountain Biogen stock. But analysts also think Biogen is due for a rebound, with 74% polled by FactSet rating the stock either a buy or overweight. Average analyst price targets imply more than 45% upside going forward. Baird analyst Brian P. Skorney recently noted optimism over Biogen’s potential expansion in Latin America, where the company can address roughly 2,000 to 4,000 patients for its spinal muscular atrophy treatment Spinraza. Other oversold stocks on the list include Starbucks and Nike . DISCLOSURES: THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.
- Business
