Oversold stocks indicate potential rebounds on Wall Street

Many stocks on Wall Street are showing signs of being oversold this week. This follows a tough time for the market, as fears of a recession and uncertainty about tariffs continue to affect stock prices. The S&P 500 and the Dow Jones gained slightly on Friday, while the Nasdaq increased by 0.5%. Despite this, the broader market had been struggling for several weeks. Using a stock screener, CNBC Pro identified some of the most oversold stocks based on their relative strength index (RSI). When a stock has an RSI below 30, it is often considered oversold, meaning it could be ready for a rebound. Retailers Costco and Target are among the oversold stocks this week. Target has an RSI score of just 19.13. Its shares fell 0.6% during the week and are down over 16% this March. The company has warned about weak sales in February and expects a significant decline in its first-quarter profits compared to last year. Despite this, analysts believe Target shares could rise by more than 32%. Costco has a 14-day RSI of around 28.9. Its shares rose by 0.6% this week, but are still down more than 13% for March. The retail giant faced challenges after missing earnings expectations in its fiscal second quarter. Analysts predict a potential rebound of about 19% for Costco shares, with many rating it a buy. Another notable mention is Deckers Outdoor, a shoe retailer with an RSI of about 21.6. Deckers' stock fell 0.7% over the week, and it has lost 15% in March alone. Year-to-date, shares are nearly 42% lower. However, analysts expect a remarkable turnaround, forecasting shares could surge by nearly 85%. Most view the stock as a strong buy or buy.