![Salesforce is the most oversold stock amid a down week in the market](https://news7g.com/wp-content/uploads/2024/06/107379915-1709151094572-gettyimages-2046166982-js2_7084_9rxlwcvn-780x470.jpeg)
This week’s market sell-off broke the S&P 500’s winning streak — but it also presented a chance for investors to seize the opportunity before a recovery is likely. All three major averages are on track to decline for the week, even as the Federal Reserve’s preferred inflation gauge on Friday was in line with expectations. The S&P 500 and Nasdaq Composite are both on pace for a five-week winning streak, while the Dow Jones Industrial Average is tracking back-to-back weekly losses. Dow member Salesforce is down about 19% for the week, making it the most oversold stock on the market. Investors sold off the stock after the company reported a revenue decline and weak guidance on Wednesday. With this in mind, CNBC Pro screened Wall Street’s most overbought and oversold stocks as measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI below 30 are considered oversold, indicating the stock may be about to recover. On the other hand, a 14-day RSI above 70 suggests a stock is overbought and could pull back soon. The weekly data below is updated as of 9:38 a.m. ET Friday. Salesforce has a 14-day RSI of 16.4. Since the beginning of the year, the stock has fallen 13%. Shares fell about 20% on Thursday alone. Although Salesforce’s quarterly results disappointed investors, many Wall Street analysts remain bullish on the stock and its AI-related prospects, maintaining a consensus rating of buy. Goldman Sachs said the company is an “underrated Gen-AI winner,” and Morgan Stanley also highlighted future benefits from AI. According to analysts surveyed by LSEG, the stock is forecast to rise more than 37% from here. Biopharmaceutical company Bristol-Myers Squibb is the second most oversold stock of the week. The stock is down more than 2% year to date and is down about 20% in 2024. Analysts have a consensus rating of hold on the stock. The company is undertaking a $1.5 billion cost-cutting initiative by 2025, which it plans to do through layoffs, role consolidation, discontinuation of certain drug programs and other measures. Other cost saving methods. According to Bristol-Meyers Squibb’s average price target, the stock could rise more than 29%. Here are some overbought stocks of the week: Technology company HP jumped 17.1% this week, becoming the most overbought stock with an RSI near 90. The company reported earnings and revenue exceeded the fiscal second quarter on Wednesday. While half of HP’s analysts rate the stock a buy or strong buy, the stock may not be able to sustain its gains. The analyst consensus price target implies the stock will fall more than 5% from current levels. Shares fell more than 6% on Friday, but they are up about 20% year to date. HPQ YTD mountain HP stock 2024 Ralph Lauren is another overbought name that rose nearly 7% for the week. The company has an RSI of 76.9, and analysts see gains of more than 3% from here. The apparel company’s fiscal fourth-quarter earnings beat analysts’ estimates. The company also announced a 10% dividend increase. Shares are nearly 14% higher in May and up nearly 30% in 2024.