Several stocks are primed for a bounce after recent weakness at the turn of the new year. Although the market had a strong run in 2024 that saw the S & P 500 notch its second consecutive annual gain exceeding 20%, the major U.S. indexes closed lower in the final trading days of 2024 and stocks have skipped the so-called Santa Claus rally. The broad-based index snapped a five-day losing streak on Friday, but it was still lower on the week, marking its third negative week over the past four. Using the CNBC Pro stock screener tool, we found the most oversold stocks on Wall Street as measured by their relative strength index, or RSI, which measures the speed and size of a security’s recent price changes . Stocks with a 14-day RSI below 30 generally indicate that a stock is oversold and could see a rebound. Take a look at the companies below: HCA Holdings is among the most oversold stocks in the S & P 500 with an RSI of 22.4. Many investors adopted a negative outlook on the health-care company after President-elect Donald Trump’s election victory in early November, given that HCA is a hospital chain that benefits from Medicaid and Affordable Care Act subsidies, which are at a higher risk of expiration in a Republican sweep scenario. Analysts still have a consensus buy rating on the stock, and the average analyst price target predicts nearly 37% upside ahead, according to LSEG. This suggests the recent hit to shares could be overblown. The stock is down roughly 9% over the past month. Coors Light maker Molson Coors Beverage is another oversold name, given its 14-day RSI of 23.5. Wall Street’s consensus rating on the stock is a hold, but analysts see an average upside for the stock of more than 13%. Shares have been weak for a while, with a 10% decline over the past month, but on Friday alcohol stocks took another leg down as the U.S. surgeon general warned about a link between alcohol consumption and higher risks of developing cancer . The advisory may be the first step toward other policy changes that could include warning labels on products. Prior to this announcement, Bank of America analyst Brian Spillane said he was anticipating 2025 would “be a more normal year” for Molson Coors. The analyst’s bullishness came from the expectation that U.S. beer industry sales volume would improve. He upgraded Molson Coors in early December to buy from neutral and raised his price target to $70, suggesting shares could rise more than 26% from Friday’s close. Also on the oversold list are steel production companies Nucor and Steel Dynamics . Softer demand in manufacturing and construction industries, along with higher prices on some steel product imports, have hurt the companies’ stock.
