Stocks continued to perform well this week, making companies including General Motors overbought, according to one popular technical indicator. Other stocks are also seen as oversold after a busy earnings week. Last week ended with all major US stock indexes rising. All three major averages closed at record highs Friday after September’s weaker-than-expected inflation data, with the S&P 500 topping 6,800 for the first time and the Dow Jones Industrial Average topping 47,000 for the first time. CNBC Pro screened the S&P 500 stocks for the most overbought and oversold stocks through the end of the week using the 14-day Relative Strength Index (RSI). Generally, an RSI value below 30 indicates that the stock is oversold and could bounce back soon. On the other hand, an RSI above 70 indicates that the stock is overbought and could fall in the short term. Each of the overbought stocks in the screen below rose more than 5% this week, while each of the oversold stocks fell at least 5%. Take a look at the most overbought stocks on the Street. Intuitive Surgical is the most overbought stock on the screen with an RSI above 82. The maker of robotic-assisted surgical systems has soared more than 23% this week through early trading Friday on the back of third-quarter results that beat analysts’ expectations. Investors welcomed the increase in sales of da Vinci robotic systems during this period. Intuitive also leads by 23% over the past month, but less than 5% for the year. General Motors has also soared 49% in the past six months and was overbought with an RSI of around 74. The Detroit automaker continued to cut costs, raised its 2025 financial outlook and laid off more than 200 salaried employees Friday, days after it beat Wall Street’s highest third-quarter profit and bottom line expectations. General Motors stock is up 31% this year. However, its high RSI suggests vulnerability. Analyst consensus price targets suggest GM stock will remain little changed over the next year, according to LSEG data. 3M also rebounded this week with strong financial results. The company, which makes cellophane tape and other adhesives, on Tuesday raised its annual profit forecast for the second time this year, pushing its stock up more than 12% in the week that ended early Friday. The company’s 14-day RSI is around 73. Meanwhile, the most oversold stocks in the S&P 500 were: AT&T is down more than 6% in the week through early trading Friday, down about 10% over the past three months, and is oversold with an RSI of about 21.5. The company on Wednesday reported third-quarter results that beat expectations for wireless subscriber numbers, driven by the success of bundle plans and strong promotions associated with the latest iPhone launches. Managed healthcare provider Molina Healthcare is another heavily oversold stock, down more than 15% this week alone, bringing its year-to-date loss to about 44%. The company cut its full-year profit forecast for the third time this year, reporting significantly lower-than-expected profits in a report released Wednesday.
