Telecom giant Charter is the most overbought stock on Wall Street. Here are the others

Published Sat, Jul 15 20237:11 AM EDT

Some new buying and selling opportunities are beginning to surface as stocks roared back into rally mode this week. The S & P 500 gained 2.4% amid a better-than-expected inflation reading and the early innings of second-quarter earnings season. The broader market index also reached its highest level in more than a year. That said, it may be prudent for investors to trim exposure in some names. CNBC Pro screened the S & P 500 for stocks in overbought territory, based on their 14-day relative strength index. A 14-day RSI above 70 means a stock is overbought and could be due for a reversal. Here are the S & P 500 stocks currently in overbought territory: Charter Communications is the most overbought stock in the S & P 500, with a gain of 1% this week and an RSI reading exceeding 99. Only a little over a third of analysts retain a buy rating on shares, though the average price target implying about 20% upside for shares. The stock's gained a nearly 11% this year. A handful of oil and energy stocks also made the list, including Phillips 66 , SLB , Williams Companies and Baker Hughes , with RSIs greater than 91. Phillips 66, 3.5% this year, is the most overbought of the group with an RSI of about 94.5. Even so, more than half of analysts view shares as a buy and about 19% upside ahead. While stocks rose broadly this week, some stocks still appear in deep oversold territory and look poised for a bounce. These are the most oversold names in the S & P 500: Hershey is the most oversold stock of the group, with an RSI of about 13. Shares lost 1.7% this week and are down more than 4% for July. Only about 27% of analysts hold a buy rating. The consensus price target suggests shares could gain about 16% over the next year. Several health care companies also made the cut, including UnitedHealth , which popped 7.2% on Friday on the heels of a strong second-quarter earnings report. Although it holds and RSI of about 23 and is down 9.4% this year, analysts are generally keen on the stock, with 75% rating it as buy. The average price target implies more than 20% upside. Other health care and pharmaceutical stocks that made the list include Humana , Bristol-Myers Squibb , Pfizer and Johnson & Johnson .