Hewlett Packard Enterprise has emerged as one of the most overbought stocks as the market seesaws into volatility this week. Market uncertainty has given investors whiplash over the past few sessions, with the S&P 500 hitting a record high at the start of the week. But Friday’s decline in semiconductor stocks ultimately pushed the overall market index lower, ending a nine-week winning streak. Still, investors bought into several individual stocks this week, pushing them into overbought territory. CNBC Pro used its stock screener tool to identify such stocks based on their 14-day relative strength index (RSI). A stock with a 14-day RSI value above 70 is considered overbought and a pullback may be imminent. On the other hand, a result below 30 indicates that the stock is oversold and could bounce back soon. The following table shows the most overbought stocks this week. The explosion in earnings pushed Hewlett Packard Enterprise up 14% for the week. Shares soared after the company reported higher cloud and artificial intelligence revenue in its fiscal second quarter than analysts expected. During the period, HPE earned adjusted earnings of 79 cents per share on revenue of $10.68 billion. That beat analysts surveyed by LSEG that expected earnings of 53 cents per share and revenue of $9.79 billion. This was the largest profit increase since 2018. Loop Capital upgraded the stock from Hold to Buy following the quarterly report. The latest price estimate is up from $23 to $75, implying a 52% upside from HPE’s Friday closing price. Analyst Ananda Baruah said, “April Q was a historic blockbuster quarter as the adoption of Agentic and Inferencing led to not only revenue expansion but also (operating margin) expansion.” “Now that our commercial inference investments have begun in earnest, we believe we are positioned to be at the forefront of 3-5 years of expanded growth.” HPE’s RSI was 73 over the weekend. Investors also flocked to cybersecurity stock Fortinet, which ended the week with an RSI of 76. Fortinet had a volatile week, with fluctuations in response to quarterly results from peers Palo Alto Networks and CrowdStrike. Fortinet stock rose more than 2% on Thursday to a 52-week high, but ended up falling 3% on Friday as tech stocks slumped. Despite this, the stock rose nearly 5% for the week. This week’s list of most overbought stocks also included names like Host Hotels & Resorts and Humana. Each stock’s RSI ended the week at 79 and 77, respectively.
