The most overbought companies this week reflect investors’ rotation away from flashy tech names and into other corners of the market. Major U.S. indexes climbed this week despite fears about elevated geopolitical shocks and stock market valuations. The S & P 500 notched an all-time high on Friday and closed at another record. The tech sector was largely flat on the week, but consumer discretionary and materials saw sharp gains. Given this week’s rally, certain stocks have tipped into overbought territory and could see a dip in the near term. CNBC Pro used its stock screener tool to identify the most overbought and oversold stocks as measured by their 14-day relative strength index, or RSI. Those with a 14-day RSI above 70 are considered overbought, meaning that a pullback could be due. A reading below 30 indicates that a stock is oversold and may soon be due for a potential rebound. Take a look below for the market’s most overbought and oversold stocks this week. Major American defense contractor L3Harris Technologies made the overbought list with an RSI of 78.2. The stock rose about 10% this week and got a boost after President Donald Trump in a Wednesday Truth Social post called for a $1.5 trillion defense budget in 2027. Shares of L3Harris are up 14% year to date and the stock hit a 52-week high on Friday. The stock could be fairly valued at current levels, however, given that analysts polled by LSEG have a price target on shares that implies less than 0.1% potential upside. Other stocks in overbought territory are Ulta Beauty , Target , Centene and United Parcel Service . Ulta, up 7.4% this week, is trading at all-time high levels back to its market debut in October 2007, according to CNBC data. Oversold stocks we found include Apple , Campbell’s and Paramount Skydance . Apple shares saw seven consecutive days of losses between Dec. 30 and Jan. 8. This week, Alphabet’s market capitalization overtook Apple’s for the first time since 2019. The moves come as Apple has remained largely distant from its tech peers’ race to develop leading artificial intelligence products. Shares of Apple, which has an RSI of 22.8, are down 4.6% year to date. Paramount Skydance has also become oversold, according to its RSI of 29.8. The stock fell this week after the Warner Bros. Discovery board once again rejected a hostile takeover offer from Paramount Skydance.
