Some stocks that investors have bought up this week could be positioned for a pullback if the market remains volatile. Stocks have seen big swings in recent weeks in reaction to the latest news about President Donald Trump’s tariffs, with investors awaiting potential deals between the U.S. and its trading partners. The president said agreements would be announced “over the next three to four weeks.” While the market kicked off this week with significant losses, it was able to recover in the days that followed, as each of the major averages secured a four-day win streak on Friday, finishing out the week with massive gains. The S & P 500 posted a more than 4% gain for the week, while the Nasdaq Composite and Dow Jones Industrial Average saw a rise of nearly 7% and more than 2%, respectively. Investors are now looking ahead to a slew of Big Tech earnings slated for release in the week ahead, which could lead the market higher if results turn out ” pretty decent .” That comes after Alphabet posted an earnings and revenue beat Thursday after the bell, sending shares higher in Friday’s session. Using its stock screener tool , CNBC Pro identified the most overbought and oversold stocks on Wall Street by weighing their 14-day relative strength index, or RSI. An RSI reading above 70 signals that a stock could be overbought and soon see some losses. By contrast, an RSI below 30 indicates that a stock might be oversold and see a rebound in the event of market gains. Internet name VeriSign was among the four overbought stocks in the past week, having an RSI of 70.45. According to LSEG, it has an average price target of around $253, which implies more than 7% downside from Friday’s closing price. Shares of the Virginia-based company rose 8% during Friday’s session, scoring a fresh all-time intraday high, after posting better-than-expected revenue for the first quarter and announcing the initiation of a cash dividend of 77 cents per share. The dividend is set to be payable on May 28 to shareholders of record as of May 19. Friday’s gain puts the stock’s one-week gain at 10.6%. It has also advanced almost 32% this year and 50.5% over the past six months. VRSN 6M mountain VRSN, 6-month Streaming giant Netflix was also one of the Street’s most overbought stocks with an RSI of 72.18. The stock, which similarly hit a record intraday high Friday, climbed more than 13% in the past week, bringing its year-to-date rise to more than 23% and its six-month advance to about 46%. NFLX 6M mountain NFLX, 6-month This follows the company’s beat on the top and bottom lines last week, when it reported a 13% increase in revenue for the first quarter. Netflix attributed that gain to strong subscription and advertising dollars. The name was recently added to CNBC Pro’s All-Weather Stock List, as some analysts have pointed to its resilience amid the uncertain macro environment. In fact, Deutsche Bank said that Netflix was the ” most immune ” stock from the economic turmoil related to Trump’s tariff policy within the media industry. Netflix has an average target of roughly $1,116. That reflects just more than 1% upside potential, as of Friday’s close. Bristol Myers Squibb and UnitedHealth Group were the only two oversold names on the Street this week. Bristol Myers had an RSI of 24.41, while UnitedHealth had a 28.87 RSI. Additionally, the two health stocks significantly lagged the broader market this week, with Bristol Myers falling nearly 3% and UnitedHealth losing almost 8% over the period. While UnitedHealth is coming off an annual guidance cut in anticipation of rising medical costs, which weighed on the stock, Bristol Myers hiked its earnings and revenue forecast for the year. The drugmaker also beat analyst expectations for the first quarter. BMY UNH 1M mountain BMY vs. UNH, 1-month After a tough April, where Bristol Myers has lost 21.5% and UnitedHealth has pulled back 20.1%, shares are down in 2025. Year to date, Bristol Myers has plummeted more than 15%, and UnitedHealth has plunged more than 17%. Bristol Myers’ $56 consensus target sees more than 17% upside ahead, while UnitedHealth’s almost $572 consensus target calls for more than 36% upside. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
These four stocks just entered overbought territory and could be due for a drop if volatility persists
Apr 26, 2025
