This Week’s Most Overbought Stocks Include Deere and Quanta Services
Published Saturday, February 21, 2026 – 9:57 AM EST
By Lisa Kailai Han
Stocks showed broad gains this week as investors eagerly responded to a mix of market-moving events. Among the names attracting disproportionate investor interest and elevated momentum were agricultural machinery giant Deere & Company and infrastructure services provider Quanta Services. Both companies featured prominently on CNBC Pro’s stock screener as some of the most overbought stocks based on their 14-day relative strength index (RSI) readings, signaling potential caution for traders.
Market Context: Relief Rally Boosts Stocks
The overall market rally was sparked after the U.S. Supreme Court struck down President Donald Trump’s emergency tariffs, removing a significant source of uncertainty and boosting investor confidence. Although economic data released earlier in the week disappointed expectations, the relief rally powered stocks higher, particularly on Friday’s trading session.
Understanding Overbought Stocks and the RSI Metric
CNBC Pro’s stock screener tool analyzes stocks using the 14-day RSI, a technical indicator measuring the speed and change of price movements. An RSI above 70 signals a stock is overbought — which can suggest it is overvalued and may be primed for a pullback. Conversely, stocks showing an RSI below 30 are considered oversold, potentially hinting at undervaluation and a possible near-term rebound.
Deere: Riding High After Strong Earnings and Guidance Raise
Deere registered an RSI of 78, marking it as one of the most overbought stocks this week. Shares climbed nearly 10% over the course of the week, with a particularly strong surge of almost 12% on Thursday. This jump followed the company’s announcement raising its full-year net income guidance and the release of fiscal first-quarter earnings that exceeded both revenue and earnings estimates.
Analysts reacted to Deere’s strong performance with mixed but overall favorable outlooks. Morgan Stanley reiterated an overweight rating on Deere stock, with analyst Angel Castillo setting a price target of $560. Castillo cautioned that this target still implies a 15% downside from current levels, emphasizing that future stock performance will hinge on North American large agriculture trends.
Meanwhile, Jefferies analyst Stephen Volkmann maintained a hold rating with a more conservative price target of $475, implying a potential 28% decline, reflecting varied sentiment on the stock’s sustainability at these elevated levels.
Quanta Services: Overbought with Strong Forward Guidance
Infrastructure services provider Quanta Services also showed an overbought RSI of 73. The stock gained more than 5% during the week, buoyed by solid quarterly results and an optimistic full-year earnings outlook that surpassed analysts’ expectations according to FactSet data.
Bank of America’s Sherif El-Sabbahy reiterated a buy rating on Quanta Services, simultaneously raising the price target from $500 to $610. This new target suggests approximately 10% upside potential, reflecting continued confidence in the company’s growth prospects amidst the ongoing expansion in infrastructure projects.
Oversold Stocks: Blackstone and Apollo Global Management
Not all stocks experienced rallies this week. Asset management firms Blackstone and Apollo Global Management found themselves in the opposite category, appearing as some of the most oversold stocks with RSIs of 27 and 28 respectively. Blackstone shares declined over 6%, while Apollo’s stock dropped more than 4% for the week.
Summary
Investors should approach overbought stocks like Deere and Quanta Services with careful consideration of the underlying fundamentals and broader market trends, as technical indicators such as the RSI suggest these stocks might be due for consolidation or short-term pullbacks. Conversely, oversold stocks like Blackstone and Apollo may offer potential rebound opportunities if market conditions improve.
For more detailed insights and real-time data on overbought and oversold stocks, readers are encouraged to explore CNBC Pro and its stock screener tool.
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