It’s been a very disappointing week for the market as a whole, but one popular technical indicator suggests some of the worst-performing stocks in the S&P 500 could soon see a rebound. All three major U.S. indexes ended the week in the red, with the Nasdaq having its worst week since April. Investors are growing concerned about a potential bubble in artificial intelligence stocks and the high valuations of some technology companies. Adding to the stress this week were two data releases revealing consumer sentiment is nearing record lows, and job cuts announcements for October reached the highest level for the month since 2003. The lack of significant data releases during the prolonged U.S. government shutdown has limited investors’ insight into economic conditions. With several stocks selling off over the past week, we decided to look for the most oversold and overbought stocks on Wall Street, as measured by the 14-day Relative Strength Index (RSI), according to stock screening tool CNBC Pro. A stock with a 14-day RSI below 30 is considered oversold, suggesting a rebound is possible soon. On the other hand, a reading above 70 suggests that the stock is overbought and could pull back in the short term. Fintech company Fiserv’s RSI is around 14, making it the most oversold stock on Wall Street. The stock plummeted 44% on October 29th, the worst day ever for stocks. The stock has fallen about 69% this year. Fiserv’s selloff comes after the company lowered its full-year outlook and announced several changes to its executive team. Fiserv attributed the slowdown in growth to Argentina’s deteriorating economic environment, as Argentina contributed 10 percentage points to Fiserv’s 16% organic growth last year. Based on LSEG data, the average Fiserv analyst price target of $106.02 per share still suggests 66.6% upside potential. Several Wall Street firms, including Goldman Sachs, UBS, and Morgan Stanley, to name just a few, lowered their stock prices following Fiserv’s huge earnings. Morgan Stanley lowered its rating on the stock from overweight to equal weight and lowered its price target by $81 from $179, saying the company’s new efforts to rebuild its products will take time. FI 1Y Mountain Fiserv Stock Over the Past Year. Investors are also turning bearish on food delivery platform DoorDash after the stock has fallen nearly 19% since the start of the week. The RSI for this stock is 23.8. DoorDash’s stock price plunged after it announced plans to spend “hundreds of millions of dollars” next year on new product initiatives such as self-driving delivery. DoorDash’s third-quarter profit also fell short of analysts’ consensus estimates, according to LSEG. Other oversold stocks include cruise lines Royal Caribbean Cruises and Norwegian Cruise Line Holdings, with RSIs of 25.2 and 24.3, respectively. Meanwhile, Eli Lilly ranks as one of the most overbought stocks in the market with an RSI of 72.4. The stock has risen nearly 19% since the beginning of the year and is up about 6.4% week-to-date after the pharmaceutical giant posted strong third-quarter sales and bottom line improvements and raised its full-year outlook, driven by strong international demand for weight loss drug Zepbound and diabetes drug Munjaro. Eli Lilly’s recent agreement with the Trump administration to sell Zepbound at a discount on TrumpRx, the government’s discount platform, has also added to investor optimism about the stock. This could significantly expand access to the drug. President Donald Trump has said that the cost of weight loss drugs will be covered by Medicare and Medicaid. “Following the White House’s formal announcement of Medicare/Medicaid coverage for obesity, we reaffirm our view that LLY is best positioned to capitalize on diabetes (the total addressable market),” Deutsche Bank research analyst James Shinn said in a note to clients on Friday. Analysts surveyed by LSEG have a consensus price target for Eli Lilly, suggesting that the stock’s upside could be limited to about 3%. Stocks that were overbought this week include Amgen, McKesson, and Insight. McKesson, which is up 5% this week and 49.5% this year, soared after the company raised its fiscal 2026 profit forecast on Wednesday.
