Wall Street’s Overbought Alert: Stocks Defying S&P 500’s Losing Week

Despite the S&P 500 snapping its three-week winning streak and registering a weekly loss, a select group of stocks defied the broader market's downtrend, surging into "overbought" territory. The benchmark index saw a 0.4% gain on Friday but still closed the week down 1.4%, primarily due to a significant runup in Treasury yields that triggered a sharp sell-off on Thursday.

CNBC Pro analysts utilized LSEG data to identify S&P 500 components with a 14-day Relative Strength Index (RSI) exceeding 70. An RSI above this threshold typically indicates that a stock is overbought and may be vulnerable to an impending price correction. Here's a closer look at the companies that made this week's overbought list:

Biotech Giants Lead the Charge with Cancer Vaccine Breakthroughs

Biopharmaceutical heavyweights Moderna and Merck were prominent names among the overbought. Both companies saw their shares soar after announcing encouraging initial results from a groundbreaking experimental personalized cancer vaccine. This vaccine, developed in collaboration and administered in combination with Merck's Keytruda, achieved significant milestones in its first-ever late-stage trial, specifically benefiting patients with advanced or higher-risk melanoma whose detectable cancer had been completely removed through surgery.

• Moderna emerged as the top weekly performer on CNBC's Pro screen, rocketing an astonishing 129%. It now holds an RSI of 70 and maintains a consensus "Hold" rating from analysts.
• Merck also posted a strong showing, gaining 12% for the week, with its RSI reaching 77. Analysts generally hold a "Buy" consensus rating for Merck.

Estée Lauder Shines on Strong Earnings and Optimistic Outlook

Luxury cosmetics giant Estée Lauder entered overbought status following a robust rally fueled by its latest earnings report. Shares climbed over 18% during the week. The company comfortably exceeded Wall Street's top and bottom-line expectations for its fourth quarter. Furthermore, Estée Lauder provided an upgraded outlook for its adjusted operating margin for fiscal year 2027, now projected to be between 12.7% and 13.5%, an increase from the previous 12.5% to 13%. The company also anticipates adjusted earnings per share for fiscal 2027 to range from $3.10 to $3.35, aligning with FactSet's consensus of $3.19 per share.

Stéphane de La Faverie, President and CEO of Estée Lauder, expressed strong confidence in the company's trajectory: "For fiscal 2027, we are affirming our confidence to accelerate organic sales growth. In addition, we are raising our outlook for an even stronger adjusted operating margin, as we double down on our strengths to further diversify growth."

Other Notable Overbought Stocks

Rounding out the list of overbought equities were:

• Agilent Technologies, which recorded the highest RSI on the screen at 79.
• Thermo Fisher Scientific, with an RSI of 71.

Both Agilent Technologies and Thermo Fisher Scientific currently carry "Buy" consensus ratings from Wall Street analysts, suggesting continued analyst confidence despite their overbought technical status.