The most overbought stocks in the financial sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
eHealth, Inc. (NASDAQ:EHTH)
- eHealth issued Q4 guidance above analyst estimates and raised FY22 revenue guidance. The company’s stock has a 52-week high of $22.25 .
- RSI Value: 74.29
- EHTH Price Action: Shares of eHealth jumped 32.3% to settle at $7.17 on Wednesday.
MarketAxess Holdings Inc. (NASDAQ:MKTX)
- MarketAxess reported better-than-expected Q4 EPS and sales results. The company’s stock has a 52-week high of $390.13.
- RSI Value: 85.47
- MKTX Price Action: Shares of MarketAxess gained 10.3% to close at $363.28 on Wednesday and added 0.1% in after-hours trading.
Capital One Financial Corporation (NYSE:COF)
- Capital One Financial reported downbeat quarterly earnings. The company has a 52-week high of $160.54.
- RSI Value: 79.28
- COF Price Action: Shares of Capital One Financial rose 9% to close at $116.09 on Wednesday and lost 0.1% in after-hours trading.
Esquire Financial Holdings, Inc. (NASDAQ:ESQ)
- Esquire Financial reported better-than-expected Q4 EPS and sales results. The company’s 52-week high is $48.13.
- RSI Value: 72.64
- ESQ Price Action: Shares of Esquire Financial rose 8.5% to close at $44.75 on Wednesday and added 0.1% in after-hours trading.
CNO Financial Group, Inc. (NYSE:CNO)
- CNO Financial is expected to report results for the fourth quarter after the market closes on Feb. 7, 2023. The company has a 52-week high of $26.74.
- RSI Value: 79.24
- CNO Price Action: Shares of CNO Financial rose 7.9% to settle at $25.33 on Wednesday and added 1.5% in after-hours trading.
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