Why S&P 500's Year-Long Overbought Signal Has This Expert Talking, Plus 3 Stocks To Watch
Portfolio Pulse from Stjepan Kalinic
Seth Golden highlights that the S&P 500 has been overbought for a year, a rare occurrence historically associated with continued positive returns. Stocks like Lockheed Martin, Lowe's, and Entergy are currently overbought, with each facing unique market conditions.
October 03, 2024 | 9:16 pm
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POSITIVE IMPACT
Entergy's stock is overbought with a 30% YTD return, benefiting from energy growth in the southern U.S. Despite this, it trades at a reasonable P/E ratio.
Entergy's stock performance is supported by energy demand growth, making it attractive despite being overbought. Its reasonable P/E ratio suggests potential for further gains.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Lockheed Martin's stock is overbought, reaching an all-time high due to increased defense spending and a new U.S. Navy contract. Despite high debt, its strong balance sheet supports a 2.1% dividend.
Lockheed Martin's stock benefits from increased defense spending and a new contract, driving its price to an all-time high. Despite being overbought, its financial health supports continued investor confidence.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Lowe's stock is overbought, reaching a new high after a FED rate cut. However, it faces challenges with a 10% revenue decline and dimmed growth projections.
Lowe's stock surged due to a rate cut but is overbought amid declining revenues and growth concerns, suggesting a cautious outlook.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 75