Walmart and Netflix Among Most Overbought Stocks as Market Heads for Winning Week

The stock market has been soaring, with the S&P 500 hitting all-time highs this week and the Nasdaq Composite heading for a weekly advance of over 3%. While investors are eagerly snapping up stocks, some names might be overbought and due for a pullback. This week, the Dow Jones Industrial Average has lagged behind, losing roughly 0.5%.

Using the CNBC Pro stock screener tool, we’ve identified some stocks that are considered overbought based on their 14-day relative strength index (RSI). An RSI reading above 70 typically indicates a stock is overbought, suggesting a potential pullback, while an RSI below 30 could mean a stock is oversold and may see future upside.

At the top of the list of overbought stocks is Walmart, with an RSI of about 83.3. Shares of the retail giant hit a new 52-week high this week as investors see it as a winning choice for value-seeking holiday shoppers. Bank of America even reiterated its buy rating on Walmart, stating that the stock warrants a higher multiple due to its digital transformation and market outperformance.

Another overbought stock is Netflix, with an RSI of more than 76. The streaming giant has seen a 90% increase in its stock this year, fueled by growth in ad-tier memberships. Analysts are excited about Netflix’s expansion plans, including launching its service in Canada and beyond in 2025.

Other overbought stocks include Palantir, United Airlines, and Take-Two Interactive Software. Meanwhile, oversold names like Kraft Heinz and Mondelez have seen declines this week and are in the red for the year. Kraft Heinz, in particular, was downgraded to neutral from overweight due to challenges in retail sales and potential risks.

As the market continues to head for a winning week, it’s crucial for investors to stay informed about overbought and oversold stocks to make informed decisions about their portfolios.