Package product maker Sealed Air was the most sold-off stock in recent weeks. Shares saw the lowest average relative strength index, or RSI, in the S & P 500 in the past 14 days, which means it’s the most oversold in that time period. An RSI reading lower than 30 can indicate a stock has fallen too far and is at a price that may present a good time to buy in before a bounce. On the other hand, an RSI above 70 means it may be overbought and due for a pull back. Sealed Air has had a rough few weeks, with the stock down nearly 24% since the start of August. It hit lows not seen since the pandemic in Friday’s session. The company posted a mixed second-quarter report in early August, with earnings per share beating expectations of analysts polled by FactSet while revenue came in below the consensus estimate. The real kicker was the company cut its full-year forecast, with management citing continued weakness in end-markets that should remain present in the second half of the year. SEE mountain 2023-08-01 Sealed Air in August UBS analyst Joshua Spector downgraded shares to neutral from buy later in the week. Just one-third of analysts rate the stock a buy, according to FactSet. But the average price target implies shares could rally more than 31%, offering another reason to believe a bounce is on the horizon. Morgan Stanley was also on the list with an RSI of 6.48. The financial stock has fallen about 6.5% since August began. Investor jitters may be tied to broader industry concerns. Most recently, a Fitch Ratings analyst warned that dozens of U.S. banks could be at risk of credit downgrades. Morgan Stanley, which is trading near its flatline for the year despite the broader market’s climb, may see its own rally ahead. Slightly more than half of analysts rate the stock a buy, with an average price target implying an upside of nearly 14%. Insulin management product maker Insulet and consumer products company International Flavors & Fragrances also had some of the lowest RSIs. Here’s the full list: On the other hand, Charter Communications was the most overbought stock with an RSI of 81.57. The stock has gained nearly 4% since August began. At the end of last month, the telecommunications company reported better-than-expected earnings for the second quarter and reaffirmed full-year expectations for capital expenditures. Wolfe analyst Peter Supino upgraded the stock to outperform from peer perform in early August. But less than two out of every five analysts rate the stock a buy, according to FactSet. While a high RSI can flash warning signs of a correction in the near future, analysts see more steam ahead. The average price target implies shares could gain another 13.5% over the next year. Amgen , the best performing stock in the Dow Jones Industrial Average this month, also made the list. Shares have advanced nearly 12% since August began as investors cheered the health stock’s strong second-quarter earnings and improved expectations for the full year. Wall Street sees a pullback ahead. The average analyst expects shares to slip nearly 3.5% in the next year, based on current price targets. See the full list of overbought stocks below: — CNBC’s Michael Bloom contributed reporting.
Morgan Stanley and this packaging stock are among the most oversold in the S&P 500