Top 5 Financial Stocks That May Crash


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.

United Insurance Holdings Corp. UIHC

  • United Insurance Holdings, during November, posted a Q3 loss of $1.34 per share. The company’s stock has a 52-week high of $4.03 .
  • RSI Value: 73.95
  • UIHC Price Action: Shares of United Insurance fell 9.6% to close at $2.46 on Thursday.

Future FinTech Group Inc. FTFT

  • Future FinTech recently said Paraguayan Cryptocurrency Mining Farm is operational. The company’s stock has a 52-week high of $2.19.
  • RSI Value: 75.66
  • FTFT Price Action: Shares of Future FinTech Group fell 6% to close at $1.88 on Wednesday and added 2.7% in after-hours trading.

Enova International, Inc. ENVA

  • Enova International reported better-than-expected Q4 EPS and sales results. David Fisher, Enova's CEO said, "Our diversified product offerings have allowed us to adapt to the changing environment and meet strong customer demand while maintaining portfolio resiliency and solid financial results." The company has a 52-week high of $55.53.
  • RSI Value: 72.40
  • ENVA Price Action: Shares of Enova International rose fell 2.2% to close at $50.60 on Thursday.

Jackson Financial Inc. JXN

  • Morgan Stanley maintained Jackson Finl with an Equal-Weight and raised the price target from $39 to $40. Jackson Financial, during November, reported better-than-expected Q3 EPS results. The company’s 52-week high is $47.52.
  • RSI Value: 74.75
  • JXN Price Action: Shares of Jackson Financial dropped 2% to close at $45.78 on Thursday and lost 0.2% in after-hours trading.

Primerica, Inc. PRI

  • Primerica raised dividend from $0.55 to $0.65 per share. The company has a 52-week high of $171.15.
  • RSI Value: 74.94
  • PRI Price Action: Shares of Primerica fell 1.8% to settle at $166.43 on Thursday and added 0.6% in after-hours trading.

Read More: Investor Optimism Declines Slightly As Dow Drops 250 Points

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