Despite last week’s market tumble, there are some stocks that are in overbought territory. The S & P 500 tumbled 2.7% for the week , its biggest weekly decline since December.
Concerns over persistent inflation and the prospects of higher rates for longer dented investor sentiment. They can gauge this with the relative strength index, which measures a stock’s momentum.
This indicates that it may be overextended after a strong run. Meanwhile, a stock with a 14-day RSI under 30 is considered oversold, meaning it may want more to that name.
CNBC Pro screened for S & P 500 stocks in overbought territory, using the relative strength index. Insurance company Arch Capital topped the list, with an RSI of 87.7. The stock bucked the broader market negative trend’s last week, advancing 2%.
The stock is well liked by analysts, with nearly 80% rating it a buy. Still, only one-third of analysts covering the snack and beverage giant rate it a buy. Defense contractors Northrop Grumman and Lockheed Martin also made the list.
Northrop’s RSI came in at 72.7, while Lockheed’s was 70.6. CNBC Pro also screened for S & P 500 stocks in oversold territory. Lumen Technologies also made the cut, with an RSI of 13.13.
Other stocks that made the list include Alaska Air , Abbott Laboratories and Weyerhaeuser .