Is Tesla on the Verge of a Rebound Despite Being Oversold?

Is It Time to Buy Tesla Stock? A Wall Street Metric Suggests Yes

If you’ve been keeping an eye on the stock market lately, you may have noticed that tech-related names, including Tesla, have been struggling. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite have all seen declines this week. However, according to a popular metric on Wall Street, now might be the perfect time to buy shares of Tesla as they could be ripe for a rebound.

Using the CNBC Pro Stock Screener tool, analysts have identified the most overbought and oversold names in the S&P 500 based on their 14-day relative strength index (RSI). Stocks with a 14-day RSI above 70 are considered overbought and at risk of a pullback, while those below 30 are considered oversold and primed for a recovery.

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Tesla, which had a stellar performance in 2023, has seen a 35% decline in 2024 due to various challenges, including muted sales in China and a weak artificial intelligence story. The stock has slid 7% in the past week alone and currently has a 14-day RSI of 29.4. Despite this, analysts anticipate a 23% potential upside for the company, suggesting that it could regain some of its losses this year.

Boeing is another company on the list of Wall Street’s most oversold names. Quality control concerns have plagued the plane-maker, leading to an 8% decline this week and a 30% decline for the year. While the stock has a 14-day RSI reading of 27, analysts remain positive, with the average price target implying a 40% upside.

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In addition to Tesla and Boeing, other oversold names on the list include Amgen and Globe Life. On the flip side, some stocks are considered overbought, including Dupont De Nemours and Targa Resources. These companies have seen significant gains but analysts predict a potential pullback in the near future.

Investors may also be overly bullish on Garmin, Waste Management, and Devon Energy, as these companies have high RSIs and potential downside risk according to analysts.

Before making any financial decisions, it’s important to consider seeking advice from a financial or investment advisor. This information is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice. Click here for the full disclaimer.

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