Are These Stocks Overbought?
More than 93 percent of the S&P 500 are trading above their moving 50-day moving average. Some of those companies, however, have significantly broken out from their trading range.
Price momentum is a relatively short-term occurrence, and as it starts to wane, the stocks that have deviated too far and fast from the average tend to revert back quickly.
The S&P 500, which has maintained a measured upside momentum since the beginning of the year, is barely up 5 percent from its 50-day moving average.
Case in point: Netflix. NFLX gained more than 42 percent on Thursday after it reported blockbuster fourth-quarter earnings. The most recent close of $146.86 is more than 61 percent away from its 50-day moving average of 91.03, making it the most widely deviated stock.
Similarly, Stryker, which traded within a 10 percent range throughout last year, is up another 16 percent year-to-date, trading more than 13 percent away from its 50-day moving average.
Here are some additional names that have seen new upside momentum in recent months.
| Ticker | Company | Price | 50 DMA | % Above |
|---|---|---|---|---|
| NFLX | Netflix | 146.86 | 91.03 | 61% |
| STT | State Street | 55.52 | 47.14 | 18% |
| BSX | Boston Scientific | 6.84 | 5.82 | 18% |
| HAR | Harman International | 49.98 | 43.26 | 16% |
| BLK | BlackRock | 236.33 | 205.86 | 15% |
| TXT | Textron | 28.38 | 24.77 | 15% |
| TSN | Tyson Foods | 22.3 | 19.6 | 14% |
| R | Ryder System | 56.31 | 49.61 | 14% |
| SYK | Stryker | 63.45 | 56.03 | 13% |
| NSC | Norfolk Southern | 69.83 | 61.88 | 13% |
| PLD | Prologis | 40.18 | 35.87 | 12% |
| MON | Monsanto | 103.62 | 93.28 | 11% |
| STJ | St. Jude Medical | 39.92 | 35.99 | 11% |
| HRL | Hormel Foods | 35.27 | 31.96 | 10% |
| ZMH | Zimmer Holdings | 74.43 | 67.88 | 10% |
