Several stocks, including UPS, Electronic Arts, and Starbucks, are flagged as potential rebound candidates by CNBC Pro after a turbulent trading week characterized by tariff fears and mixed market performance.
A handful of stocks could be poised for a rebound following a turbulent trading week on Wall Street. Stocks dipped lower on Friday after the White House announced that President Donald Trump's plan for tariffs on Mexico, Canada, and China would be implemented on Saturday. This news overshadowed fresh inflation data released earlier in the day, which showed that the Federal Reserve's preferred measure of price pressures aligned with economists' predictions.
Meanwhile, corporate earnings continued to roll in. News of the tariffs concluded a volatile week that witnessed shares of Nvidia retreat more than 15% from Monday to Friday as investors reassessed the artificial intelligence trade. For the week, the S&P 500 recorded a 1% loss, while the Dow Jones Industrial Average edged up 0.27%. The Nasdaq Composite declined nearly 1.6%.Against this backdrop, CNBC Pro screened for stocks that are most overbought and oversold by examining their respective 14-day relative strength index, or RSI. A 14-day RSI above 70 typically indicates that a stock is likely overbought and could experience a decline in share prices. Conversely, a stock with an RSI reading below 30 could suggest that it has been oversold and might rise as a result. Shipping giant United Parcel Service (UPS) is one of the stocks facing selling pressure. Shares have fallen more than 14% this week. On Thursday, UPS issued full-year revenue guidance that fell short of expectations and announced that it would reduce deliveries for its shipping partner Amazon by more than half by late 2026. Simultaneously, the company is implementing a multi-year restructuring program that could cut costs by approximately $1 billion. UPS's 14-day RSI of 28.99 indicates that shares could rebound. Consensus price targets from analysts polled by LSEG suggest nearly 28% upside for UPS stock moving forward. Electronic Arts (EA) also made the list. Shares of the video game developer have plummeted nearly 11% over the past year. The stock declined this week after the firm lowered its full-year bookings forecast, primarily due to challenges with its soccer franchise. EA has a 14-day RSI of 16.89, which could signal that EA stock has been under excessive pressure and could increase. Forecasts from analysts surveyed by LSEG indicate nearly 22% upside for the stock ahead. Among overbought names, Starbucks (SBUX) made the list. Stock in the coffee chain has advanced nearly 9%, following the company's better-than-expected earnings for the first quarter on Tuesday. Starbucks same-store sales have declined for four consecutive quarters, but some investors are starting to wager that new CEO Brian Niccol's turnaround plan is gaining traction. Niccol joined Starbucks from Chipotle Mexican Grill with a reputation for revitalizing brands. However, Starbucks stock could be overextending itself given its 14-day RSI of 79.13. Average analyst price targets from LSEG suggest shares could be due for a 3% pullback. Other overbought names that emerged include GE Aerospace and Visa
Stocks Market Rebound Overbought Oversold UPS Electronic Arts Starbucks Tariffs Volatility RSI
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