Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis in the world of investing. This week in the stock market was marked by volatility, but fear not, there are still opportunities for companies to rebound and for savvy investors to capitalize on market movements.
As inflationary fears, rising Treasury yields, and subdued bank earnings weighed on investors, the major averages saw a weekly decline. The S&P 500 and Dow Jones Industrial Average fell 1.6% and 2.4% respectively, marking their second consecutive week of declines. The tech-heavy Nasdaq Composite also dipped 0.5% for its third straight weekly loss.
But all is not lost. Our experts at Extreme Investor Network have used our stock screener tool to identify the most overbought and oversold stocks on Wall Street, based on their 14-day relative strength index (RSI). Stocks with an RSI above 70 are considered overbought, while a reading below 30 indicates that a stock may be oversold.
One stock that caught our attention is Devon Energy, a leading oil and gas producer, with an RSI of 82. Despite its 18% climb year-to-date, Devon Energy has potential for further growth as analysts believe the company is set to improve its capital efficiency and see positive stock re-rating.
Exxon Mobil, the country’s largest oil and gas producer, also made our list of overbought stocks with an RSI of 82. Barclays recently initiated coverage with an overweight rating, highlighting the energy sector as a strong value proposition.
On the flip side, Globe Life, a Texas-based life insurer, stands out as one of the most oversold stocks with an RSI of just 3. Despite a significant drop of 52% this year, management has rebutted accusations of insurance fraud, leading to a 20% bounce back in shares.
At Extreme Investor Network, we pride ourselves on providing unique insights and analysis to help investors navigate the complexities of the stock market. Stay tuned for more updates and recommendations to help you make informed investment decisions.
