Are you wondering whether General Electric’s recent success will continue or if a pullback is on the horizon? According to one popular chart metric, shares of General Electric could see a pullback after significantly outperforming the broader market this year.
Stocks have been on a positive trend this week after the Federal Reserve left rates unchanged and hinted at potential rate cuts in the future. Major U.S. averages are on track to end the week higher, with the Dow Jones Industrial Average set for its best week since December. The S&P 500 and the Nasdaq Composite are also on pace for weekly gains of more than 2%.
Using the CNBC Pro Stock Screener tool, it was found that General Electric’s 14-day RSI is nearly 83, indicating that the stock could be overbought. The company is preparing for its final spinoff, where it will jettison its power business and begin trading under the name GE Vernova. Analysts still have a consensus buy rating on the stock, but think shares could lose 2.1% based on their average price target.
Several oil and gas companies are also showing overbought signals, including Valero Energy, Marathon Petroleum, Marathon Oil, and NRG Energy. Analysts foresee declines for some of these companies, while Marathon Oil is expected to have nearly 17% upside according to Wall Street.
On the other hand, Zoetis, a buy-rated drug company, is showing signs of being oversold with a potential 32.6% gain over the next 12 months according to analysts’ average price target. The stock has an RSI of nearly 27 and has fallen about 15% this year.
It’s important to note that investing always involves some level of risk, and it’s crucial to do your own research and consult with a financial advisor before making any decisions. What do you think about the potential outlook for these stocks? Let us know in the comments below.
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