Apple is among the most overbought stocks on Wall Street. Here are the others

December 18, 2024

The overall S & P 500 is struggling in December and certain tickers look primed for a further pullback. The broad market index ended Friday down 0.6% for the week, providing a pause from the upward tear equities have been on since President-elect Donald Trump regained the White House last month. The Dow Jones Industrial Average slid 1.8% on the week. But the technology-heavy Nasdaq Composite gained 0.3% on the week. CNBC Pro used its stock screener tool to find the most overbought and oversold stocks on Wall Street as determined by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are considered overbought, which indicates shares might soon sell off. Conversely, a reading below 30 often signals that a stock is oversold, signifying a possible rebound ahead. This week’s overbought list was especially tech-heavy and included “Magnificent Seven” titan Apple , which had an RSI of 74. Year to date, the iPhone maker has climbed 28.9%. Earlier this week, both Bernstein and Morgan Stanley reiterated their overweight ratings on the stock, with the latter identifying Apple as a top pick for 2025. “Apple remains our Top Pick heading into 2025, and we remain bullish on: 1) Apple Intelligence accelerating iPhone replacement cycles starting in FY26 2) Services growth sustaining at double digits; and 3) gross margins expanding,” Morgan Stanley wrote. With an RSI of 77, fellow Magnificent Seven member Tesla also made the list. The electric vehicle maker is a so-called Trump trade, thanks to CEO Elon Musk ‘s close personal ties with the president-elect. Shares have surged more than 73% since the election, accounting for nearly all of the stock’s annual gains, after lagging its fellow tech titans for most of the year. On Friday, the stock closed at an all-time record . “The stock is responding to the Trump bump,” Roth MKM analyst Craig Irwin said on CNBC’s “Squawk on the Street” last week. In a report, Irwin had previously written that “Musk’s authentic support for Trump likely doubled Tesla’s pool of enthusiasts and lifted credibility for a demand inflection.” Enterprise software firm ServiceNow scored an RSI of 73. KeyBanc seemed to agree with the notion that the stock was overbought. On Thursday, analyst Jackson Ader downgraded shares to a sector weight rating from overweight. “ServiceNow has been an early AI leader, in our opinion, and remains the most flexible software platform out there,” he wrote. “Many quarters of 20% subscription growth at 30%+ free cash flow margins are likely ahead, but at this point we see little upside to the Company’s multiple and feel two key risks have emerged in recent months.” Shares of ServiceNow have surged 58.7% in 2024. Marketing and communications firm Omnicom Group , with an RSI of 24, is among the most oversold stocks on Wall Street. Shares have lagged the broader market and are up just 4.4% in 2024. The stock fell earlier this month after Omnicom announced that it will acquire Interpublic in a stock-for-stock transaction expected to close in the second half of next year. Other names on the most oversold list of stocks included pharmaceuticals giant Johnson & Johnson and energy company Consolidated Edison . — CNBC’s Fred Imbert contributed to this report. 

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