Stocks Slip Ahead of Holiday, But Oversold Names Could Be Ready to Rebound

U.S. equities eased on Friday as investors headed into the long holiday weekend. The S&P 500, which touched a fresh intraday record on Thursday, finished the week slightly lower, down 0.1%. The Dow Jones Industrial Average and the Nasdaq Composite each slipped 0.2%.

Even with Friday’s pullback, August ended on a strong note. All three major indexes managed monthly gains—an impressive showing in what is typically a weak seasonal stretch. Market optimism is being fueled by expectations of a September Federal Reserve rate cut, with the CME FedWatch Tool assigning an 87% probability of a move lower at the next policy meeting.

Against that backdrop, CNBC Pro screened the market for stocks flashing extreme technical signals on the 14-day relative strength index (RSI). Readings below 30 suggest oversold conditions and a potential rebound, while readings above 70 point to overbought territory and possible near-term weakness.

Wall Street’s Most Oversold Stocks

Keurig Dr Pepper (KDP) plunged 17% this week, including an 11% slide Monday after announcing an $18 billion acquisition of Dutch coffee group JDE Peet’s. The deal, expected to close in the first half of 2026, should generate about $400 million in cost synergies and will ultimately split KDP into two publicly traded companies—beverages and coffee.

However, the market balked at the price tag. HSBC downgraded the stock to hold, warning leverage will balloon to 6–8x EBITDA. Analyst Sorabh Daga noted: “We don’t think KDP needed to lever itself up to exit the Keurig coffee business.” Still, consensus estimates suggest nearly 30% upside from current levels.

Charter Communications (CHTR) also landed on the oversold list, ending the week off 4%. While secular headwinds persist, Bernstein recently upgraded the stock to outperform, citing discounted valuation and potential long-term catalysts. With an average price target implying a 54% gain, CHTR could have significant recovery potential.

Hormel Foods (HRL) tumbled 13% on Thursday after reporting weak fiscal Q3 earnings, leaving shares deeply oversold with a 23 RSI. The average price target signals a 22% rebound.

Wall Street’s Most Overbought Stocks

Deckers Outdoor (DECK), parent of Hoka, Ugg, and Teva, surged nearly 10% this week, pushing its RSI above 70. UBS reiterated a buy and lifted its 12-month price target to $158—implying a potential 33% rally from current levels. Analyst Jay Sole said: “We expect DECK’s EPS to positively surprise over the coming quarters due to strong sales growth from both HOKA and UGG.”

Wynn Resorts (WYNN) also flashed overbought signals with an RSI of 77 after an 11% weekly jump. UBS upgraded the casino operator to buy, highlighting its first-mover advantage in the UAE with its Al Marjan resort: “We anticipate that WYNN being the only gaming operator in the UAE should provide a meaningful head start in capturing loyalty among ultra-high-net-worth international customers,” wrote analyst Robin Farley.

Bottom Line

Markets may be cooling ahead of the holiday, but several individual stocks are heating up—or oversold enough to be candidates for a rebound. Investors eyeing near-term trades should keep a close watch on RSI signals, analyst commentary, and broader macro catalysts as September trading kicks off.

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