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Apple is now considered overbought after reaching record highs this week. Here are other stocks set for a pullback.



Apple’s stock has surged this week, becoming one of the most overbought stocks on Wall Street. The tech giant’s push into artificial intelligence, showcased at its annual Worldwide Developers Conference, has lifted shares above $200. The stock now has a 14-day relative strength index of nearly 83, signaling potential for a slide. Analysts predict a drop of more than 3% for Apple in the near future. Despite this, the S&P 500 and Nasdaq Composite are on track to end the week higher, while the Dow Jones Industrial Average is looking to finish slightly lower.

In addition to Apple, other overbought stocks this week include Broadcom, Nvidia, and Hewlett Packard Enterprise. Broadcom saw a significant increase after exceeding Wall Street estimates in the fiscal second quarter and announcing a 10-for-1 stock split. Analysts believe Broadcom has more upside potential, with a consensus target price suggesting a 5% rise. Nvidia, known for its prowess in artificial intelligence, has also seen a strong gain in 2024. However, the stock is currently overbought, with analysts forecasting a 6% dip from current levels.

On the other hand, oversold stocks such as Northrop Grumman, Tyson Foods, and Paycom have experienced declines. Northrop Grumman, a defense firm, has a 14-day RSI of about 17, indicating it may be due for a bounce. Analysts are predicting an upside of almost 20% for the stock based on consensus price targets. Last month, Northrop Grumman raised its quarterly dividend, marking its 21st consecutive annual dividend increase. Other oversold stocks, including Tyson Foods and Paycom, have also faced challenges in 2024.

Overall, the fluctuations in the stock market this week reflect the ongoing trends and developments in various industries. Apple’s focus on artificial intelligence has garnered attention and led to a surge in its stock price, making it one of the most overbought stocks on Wall Street. Despite the potential for a slide, analysts are closely watching the market dynamics to determine the future trajectory of these stocks. Investors should stay informed and monitor these trends to make informed decisions about their portfolios.

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