Top 5 Financial Stocks That May Crash This Quarter

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.

National Western Life Group, Inc. NWLI

  • National Western Life reported a decline in first-quarter EPS. The company’s stock has a 52-week high of $427.96 .
  • RSI Value: 88.18
  • NWLI Price Action: Shares of National Western Life fell 1.6% to close at $398.56 on Friday.

Enstar Group Limited ESGR

  • The company posted first-quarter net earnings of $424 million, or $24.79 per diluted ordinary share. Dominic Silvester, Enstar CEO, said, “We had a solid start to 2023, delivering strong net earnings largely driven by positive performance in our investment portfolio. We continued to build on our M&A successes from the prior year, entering into a $1.9 billion ground-up LPT with QBE, which we completed at the beginning of April, and a second USD $245 million transaction with RACQ, which we expect to close later this month.” The company’s stock has a 52-week high of $271.39.
  • RSI Value: 71.94
  • ESGR Price Action: Shares of Enstar Group fell 1.3% to close at $264.83 on Friday.

PROG Holdings, Inc. PRG

  • PROG Holdings reported better-than-expected first-quarter results. "We're pleased with our strong start to the year, with first quarter results exceeding expectations due to a favorable shift in our lease dispositions and the decisive actions we have taken to strengthen our portfolio and reduce our operating expenses," said PROG Holdings President and CEO Steve Michaels. The company has a 52-week high of $33.38.
  • RSI Value: 74.07
  • PRG Price Action: Shares of PROG Holdings fell 1% to close at $32.77 on Friday.

PagSeguro Digital Ltd. PAGS

  • Barclays initiated coverage on PagSeguro Digital with an Overweight rating and announced a price target of $16. The company’s 52-week high is $19.49.
  • RSI Value: 71.86
  • PAGS Price Action: Shares of PagSeguro Digital fell 0.8% to close at $12.34 on Friday.

Radian Group Inc. RDN

  • Radian named Sumita Pandit as CFO. The company has a 52-week high of $26.06.
  • RSI Value: 74.38
  • RDN Price Action: Shares of Radian Group fell 0.5% to settle at $25.75 on Friday.


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