Investors flocked to select names like Darden Restaurants and Target even as stocks posted weekly losses. Major averages closed lower this week as traders digested President Donald Trump’s comments regarding National Economic Council Director Kevin Hassett’s chances of becoming the next Federal Reserve chairman. While Hassett was widely considered the frontrunner for the job, Trump said Friday he would prefer he remain in his current role. The three main indices ended the week in negative territory. Still, investors have shown their love for some individual stocks, pushing them into overbought territory. CNBC Pro used its stock screener to identify these stocks as measured by their 14-day relative strength index, or RSI. Stocks with a 14-day RSI above 70 are considered overbought, meaning a pullback could be on the horizon. Conversely, a reading below 30 indicates that a stock is oversold and could soon see a potential rebound. The following table shows the overbought names: With an RSI of 77, one of the names that made the list was Darden Restaurants, owner of chains such as The Capital Grille, Olive Garden, and Cheddar’s Scratch Kitchen. Shares rose 6% for the week. But some analysts are cautious about the name. Last week, Truist Securities analyst Jake Bartlett downgraded Darden to buy, while lowering his price target from $240 to $207. “After a tough year for restaurants (-17.3% vs. +16.4% for the S&P), we see a mixed macro setup, and so we are steering investors toward stocks with idiosyncratic or ‘self-help’ stories,” he wrote. “We downgrade DRI to Hold, from Buy, due to lack of additional drivers in 2026, challenge of overtaking strong drivers in 2025, and in-line valuation.” Bartlett’s updated forecast implies shares could fall more than 3% from their Friday close. Other overbought stocks on the screen have recently found more favor with analysts, perhaps contributing to their shares’ rise. For example, Gordon Haskett raised Target to buy the pending note on Tuesday. The stock had an RSI of 80. “In the spirit of a new year/clean slate and the never-ending search for contrarian ideas…we are raising Target from Buy-Rated to Hold-Rated – establishing a new price target of $140, suggesting over 30% upside from current levels,” wrote analyst Chuck Grom. Likewise, last week, Truist upgraded aerospace and defense stock Lockheed Martin to a buy rating. The stock’s RSI of 82 ties it among the most overbought stocks on Wall Street this week. On the other hand, stocks in oversold territory this week include Datadog and Intuit. Datadog was on the list, with an RSI of 22. Shares were down 5% for the week as of Friday’s close. But Morgan Stanley analyst Sanjit Singh’s $180 price target implies the stock could rebound more than 50% from its Friday close. Singh upgraded the stock to an overweight rating from equal weight on Monday. “The return of digital transformation and cloud migration initiatives along with an emerging agent application monitoring opportunity are fueling accelerated core growth that is expected to sustain through 2027. While risk to the initial direction remains, improving underlying growth trends should ultimately drive shares higher,” the analyst wrote. Another name that could soon see its fortunes change is Intuit, which has locked in an RSI of 22. But TD Cowen initiated coverage with a buy rating last week. “We view consensus expectations and perceived risks in AI as overblown, positioning INTU shares to outperform after recent underperformance,” analyst Jared Levine wrote. Levine’s price target of $802 is about 47% higher than the stock’s closing price on Friday. The stock was down nearly 16% for the week.
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