Wall Street has seen some signs of weakness in the early days of 2024, potentially opening buying opportunities in some names. Tech stocks have been the laggards so far in the new year, with the Nasdaq Composite on pace to end the week more than 2% lower. Shares Apple have dragged down the overall tech space, pulling back more than 5% this week after downgrades from two research firms. .IXIC 5D mountain The Nasdaq Composite could see its nine-week winning streak broken on Friday. However, the sell-off in Apple — along with other prominent names on Wall Street. According to data from Bespoke, the S & P 500 tech sector has moved toward oversold territory this week as pressure has mounted. Against this backdrop, CNBC screened for the most oversold and overbought stocks, measured by the relative strength index (RSI). The RSI captures the strength and speed of stock price moves, and is a useful measure of whether stocks are overbought or oversold. A 14-day RSI reading below 30 signals shares are oversold and may present a buying opportunity, while a measure above 70 could mean that a stock is overbought and is in store for a pullback. Apple has been under pressure this week after Barclays downgraded the stock Tuesday . Piper Sandler also lowered its rating on the tech giant Thursday. AAPL YTD mountain Apple stock. This week’s losses pushed the stock’s 14-day RSI all the way down to 8.87, making it the most oversold name by that metric. It also brought Apple to within reach of its 200-day moving average, a level it hasn’t broken below since November. More than 47% of analysts polled by FactSet maintain a buy rating on shares, with their forecasts implying roughly 9% upside moving forward. Other oversold tech names on the list includes software company Synopsys , which has a 14-day RSI of 14.86. Three-quarters of analysts covering the stock have a buy rating. Shares got off to a slow start for the year, losing 4.3%. SNPS YTD mountain Synopsys stock. The stock received a bump last week following a Reuters report that Synopsys had submitted an offer to purchase peer software company Ansys. There are some names, however, that are well in overbought territory. One of those stocks is Moderna . Moderna has a 14-day RSI reading of 80.82. Nearly 42% of analysts polled by FactSet maintain a buy rating on the stock, with their average price targets implying about 17% upside moving forward. Shares have climbed more than 12% from the start of the year. MRNA YTD mountain Moderna stock. Oppeneimer upgraded Moderna to outperform from market perform earlier this week, with the firm’s optimism tied to a broader rollout of products in the next two years.
This story originally appeared on CNBC
