As of Dec. 10, 2024, three stocks in the financials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here's the latest list of major overbought players in this sector.
Main Street Capital Corp (NYSE:MAIN)
- On Nov. 7, Main Street Capital posted mixed results for the third quarter. Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the third quarter, which resulted in another quarter of strong operating results highlighted by a return on equity of 18.8%, distributable net investment income per share that continued to exceed the dividends paid to our shareholders and a new record for net asset value per share for the ninth consecutive quarter." The company's shares gained around 5% over the past month and has a 52-week high of $55.85.
- RSI Value: 75.83
- MAIN Price Action: Shares of Main Street Capital fell 0.1% to close at $55.24 on Monday.
Freedom Holding Corp (NASDAQ:FRHC)
- On Nov. 8, Freedom Holding reported quarterly earnings of $1.89 per share. This is a 3.08% decrease over earnings of $1.95 per share from the same period last year. Timur Turlov, the Company's founder and chief executive officer, stated, "Overall we are pleased with the company's financial performance during the reporting period. It was a record revenue quarter for Freedom where we achieved a 33% increase in revenues as compared to the same quarter last year, and a 29% increase over our first quarter of fiscal 2025." The company's stock gained around 9% over the past month and has a 52-week high of $131.17.
- RSI Value: 74.34
- FRHC Price Action: Shares of Freedom Holding slipped 0.05% to close at $126.45 on Monday.
Lufax Holding Ltd – ADR (NYSE:LU)
- On Oct. 21, Lufax Holding reported worse-than-expected third-quarter revenue results. Mr. YongSuk Cho, Chairman and Chief Executive Officer of Lufax, commented, "During the third quarter, while Puhui loan demand remained weak, our consumer finance business continued to grow and delivered a solid performance. We maintained stable asset quality, with the C-M3 flow rate of our Puhui loans remaining steady despite declining balances, while our consumer finance NPL ratio continued to improve." The company's stock gained around 21% over the past five days and has a 52-week high of $4.94
- RSI Value: 72.37
- LU Price Action: Shares of Lufax Holding gained 14.1% to close at $2.92 on Monday.
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