Stocks including United Airlines and Morgan Stanley have seen immense buying on Wall Street this week and could be in store for a pullback. Equities are rebounding from a sluggish start to the week on Friday , with both the S & P 500 and Nasdaq Composite rallying to fresh all-time highs. These moves were boosted by a strong rise in technology stocks including Amazon, Microsoft and Nvidia, ahead of their respective quarterly results. However, some companies may have gotten ahead of themselves. CNBC Pro screened for stocks that are technically considered overbought, when measured by their 14-day relative strength index (RSI). Stocks with a 14-day RSI measuring above 70 are typically viewed as overbought, signaling a pullback may be looming, while a 14-day RSI below 30 indicates a stock is oversold and may move higher. United Airlines stock has surged more than 82% in 2024, and has a 14-day RSI of 85.9, which is the second-highest reading on the list. The airline stock benefited from better-than-expected third-quarter results last week. United executives said it could potentially buy back as much as $1.5 billion worth of stock , which would be its first stock repurchase since the before the Covid-19 pandemic. Eighty-seven percent of analysts polled by FactSet maintain a buy rating on United Airlines stock, with their average price targets implying roughly 20% upside over the next 12 months. UAL YTD mountain United Airlines stock. Morgan Stanley stock is also overbought this week, with a 14-day of RSI of 79.5. The investment bank’s shares have gained nearly 26% in 2024. The firm also posted a third-quarter beat on the top and bottom line last week, thanks to improved performance at each of its three main business lines, including a notable rebound in investment banking revenue. MS YTD mountain Morgan Stanley stock. Consensus price targets from analysts polled by FactSet imply a roughly 0.1% pullback in the stock. What’s more is that 65% of analysts surveyed maintain a hold rating on Morgan Stanley stock. Among oversold names, Moderna tops the list with a 14-day RSI of 18.4. The stock has pulled back more than 45% in 2024. Shares of the vaccine maker took a large leg down last month after the company announced plans to slash costs by $1.1 billion . Moderna is restructuring its business due to declining sales of its Covid-19 vaccines, but the company expects to launch 10 new products by 2027. While analysts polled by FactSet maintain a consensus hold rating, their collective price targets call for more than 72% average upside. MRNA YTD mountain Moderna stock. Other oversold names on the list include General Mills and Enphase Energy .
