UnitedHealth was noticeably absent from the major averages’ surge this past week – and shares of the beleaguered insurer have become historically oversold. The health insurance giant was one of a small handful of names to sit out this week’s rally, in which stocks rebounded after U.S. and Chinese officials agreed to slash tariffs for 90 days. The S & P 500 posted a weekly gain of 5.3%, and the Dow Jones Industrial Average became positive for 2025. In what was an ugly week for UnitedHealth, the insurer’s shares touched a fresh 5-year low on Thursday after The Wall Street Journal reported that the Department of Justice is conducting a criminal investigation into the company over possible Medicare fraud. The shares were down 23% on the week. Using the CNBC Pro stock screener tool , we identified the most oversold and overbought stocks this week by weighing their 14-day relative strength index reading. A result below 30 signals that a stock might be oversold and could be due for a trading rebound. An RSI above 70 may suggest that a stock is overbought and could soon slip. UnitedHealth shares have an RSI of 14.9, per the screener. Analysts polled by LSEG still rate the stock a buy and have a price target that indicates more than 64% potential upside, according to Thursday’s closing price. This week, the stock’s RSI reading also reached a level that marked its deepest oversold condition since the 2008 Global Financial Crisis, Wolfe Research found. Since the RSI varies from one week to the next and only refers to short-term trading sentiment, investors should be aware that UnitedHealth shares aren’t guaranteed to see a jump based on this indicator alone. That’s especially the case if other negative headlines surface and further dampen sentiment. UnitedHealth’s shares have declined sharply since the company in mid-April cut its annual profit forecast , citing higher-than-expected medical costs in its privately run Medicare plans. The stock is down 50% in the past month. To be sure, UnitedHealth shares saw a 6.4% rebound on Friday as some of the company’s insiders purchased shares . Fiserv was also among the oversold this week, with an RSI of 27.6. Shares slid more than 9% over the past week, after the company’s management revealed during JPMorgan’s technology conference that its Clover business’s second-quarter growth rate would be similar to the pace in the first quarter. Analysts remain largely bullish on the name and see nearly 38% upside, though. Stocks that appear overbought, on the other hand, include Microsoft , Broadcom and NRG Energy . NRG Energy is the most overbought of the group with an RSI of roughly 80. Shares of the power company soared 33% this week after NRG announced on Monday it struck a deal valued at $12 billion to buy natural gas generation assets from LS Power. Because of the deal, the company lifted its compound annual growth rate for its adjusted earnings per share to 14% over the next five years, up from 10% previously. Tech companies Microsoft and chipmaker Broadcom have an RSI of 74.3 and 75.1, respectively. Citi analyst Tyler Radke hiked his price target on Microsoft, citing the company’s fiscal third-quarter earnings and revenue beat and its announcement Tuesday that it plans to lay off roughly 3% of its workforce. Microsoft shares posted a weekly gain of 3.5%. Other overbought stocks are discount retailer Ross Stores and heating, cooling and manufacturing company Trane Technologies .
