Alphabet, Chipotle among the most overbought names on Wall Street. Here are the others

Investors had a lot to digest this week, as government data stoked lingering doubts about the economy and a flood of earnings reports hit the tape. The major indexes all ended Thursday’s session lower, weighed down by a look at first-quarter U.S. gross domestic product that drastically missed expectations. But by Friday, upbeat earnings reports from Microsoft and Alphabet set a different tone, and the market appeared to be making a comeback , with the three stock averages all on pace for a winning week. Despite this reversal of fortune, Thursday’s stock decline might just indicate that some tickers are due for some cooling off, while others could be worth another look. CNBC Pro used its stock screener tool to identify the most overbought and oversold stocks on Wall Street as measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are said to be overbought, indicating that shares might soon turn lower. On the other hand, a reading below 30 often signals that a stock is oversold, with a potential rebound on the horizon. Alphabet was on the list, with an RSI of 75. Most analysts have a consensus buy rating on the stock but see an average 3% decline ahead. On Thursday, the technology giant posted a first-quarter earnings and revenue beat as its Google Cloud and YouTube advertising revenue outpaced expectations. Alphabet also announced its first-ever dividend. Shares of Google were trading more than 10% higher on Friday on the news, putting this year’s gains at 23% so far. Chipotle Mexican Grill also found itself on the list, with an RSI of 77. Year to date, the fast-casual chain has soared 39%, as the company has been outperforming its peers. After the bell on Thursday, the burrito chain reported first-quarter earnings and revenue that beat analyst expectations, which helped propel the stock to a fresh 52-week high in Friday’s trading. Chipotle’s is seeing strong customer traffic even though it has had to raise menu prices. With an RSI of 77, toy and entertainment company Hasbro also found itself on the list of stocks that could soon see a pullback. Shares of Hasbro are up 26% in 2024. Earlier this week, the stock gained 11% in a single day after a better-than-expected earnings report reinforced the idea that the company’s turnaround efforts were starting to improve performance. But sales still struggled in parts of the business. On the other hand, Ulta Beauty , with an RSI of 21, is one of the most oversold stocks on Wall Street. Shares of the cosmetic retailer have plunged 17% this year. The stock fell last week after Jefferies downgraded the stock to a hold rating from buy, citing growing competitive pressures. “We have viewed Ulta as a share taker in current macro, but see constraints on ULTA’s prestige biz (50% sales) due to lack of newness and increasing pressure from Sephora which raises the potential for downward revisions in the [next 12 months],” wrote analyst Ashley Helgans. J.B. Hunt Transport Services , with an RSI of 21, also found itself on the list of most oversold names. The transportation company has shed more than 19% this year, sinking 8% in a single day last week after missing analyst expectations for its first-quarter earnings and revenue. Technology giant International Business Machines has an RSI of 19. The stock is up less than 2% this year, compared to the S & P 500’s information technology sector benchmark, which has climbed more than 8% in 2024. IBM stock slipped this week after the company posted better-than-expected first-quarter earnings, but missed on revenue. — CNBC’s Fred Imbert contributed to this report.