Stocks finished a tumultuous week on a strong note, but some winning stocks could fall quickly. This shortened trading week has been marked by volatility, with stocks rising on both Monday and Tuesday on the possibility of a peace deal between the United States and Iran. Stocks fell on Wednesday on concerns about a possible rate hike in 2026. The major averages rebounded on Thursday, with all three indexes ultimately ending the week higher. Still, investors liked to pile into some individual stocks this week, pushing them into overbought territory. CNBC Pro used its stock screener tool to identify such stocks based on their 14-day relative strength index (RSI). A stock with a 14-day RSI value above 70 is considered overbought and could quickly pull back. On the other hand, a result below 30 indicates that the stock is oversold and a rebound may be near. The following table shows the most overbought stocks this week. Semiconductor Applied Materials and memory stock Western Digital were both among the most overbought stocks this week. Applied Materials is up almost 9% this week, finishing at 77 on the RSI. Meanwhile, Western Digital rose nearly 33% with an RSI of 78. Both companies’ names rose after President Donald Trump said in a post on Truth Social that Intel had struck a deal with Apple to design and manufacture chips in the United States. Applied Materials also benefited this week from Citi’s reiteration of its buy rating and raising its price target to $710. This updated forecast suggests the stock will rise 15% from Thursday’s close. Citigroup and Morgan Stanley were also among the week’s most overbought stocks. The company’s stock rose 2% and 4%, respectively, this week, with an RSI of 75 and 74, respectively. On Thursday, Morgan Stanley and Citigroup hit new 52-week highs. Earlier this week, Wells Fargo reiterated its overweight rating on Citigroup stock and raised its price target to $165 from $162. This revised forecast represents an upside of more than 15%. “This is a ‘different Citi’ with a focus on ‘durability, accountability and execution,’ as discussed in our post-Investor Day meeting with CEOs: A new era for Citigroup. The scenario is ‘under-promise, over-deliver,’ and we have an (expected) upside bias,” Wells Fargo Bank analyst Mike Mayo said. Meanwhile, stocks in oversold territory this week included Accenture, which has an RSI of 23 and is down about 25% over the period. Shares fell about 18% on Thursday after the global professional services firm said it had agreed to acquire asset intelligence firm Runzero and device and software supply chain security firm Netrise, as well as a majority stake in cybersecurity firm Dragos. The total enterprise value of this transaction is approximately $4.175 billion. Investors were also disappointed by Accenture’s third-quarter revenue of $18.72 billion, below the $18.78 billion expected by analysts surveyed by FactSet. The company’s new bookings for the period were $19.3 billion, compared to $19.7 billion in the same period last year. Earlier this week, Morgan Stanley downgraded Accenture to a comparable rating. “We downgrade ACN to EW as AI spending rationalization is not successful, the interest rate environment is less supportive of budget growth, and acquisitions become increasingly expensive,” said analyst James Fawcett. “While we continue to view Accenture as well-positioned for an eventual recovery given its size, relationships, and exposure to a major transformation program, the timing of re-acceleration is increasingly uncertain.” Fawcett’s new price target is $177, down from $240, about 38% above the stock’s closing price on Thursday. Fox Corporation, which fell more than 20% this week, was also among the most oversold stocks. The media giant ended the week at RSI 26. Shares fell this week after Fox announced it would acquire Roku for $160 a share, or about $22 billion. The company said it obtained $12 billion in financing for the deal, and said it expects to fund the cash portion of the cash-for-stock deal with a combination of new debt and cash on hand.
