Top 5 Financial Stocks That May Implode 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.

First Savings Financial Group, Inc. FSFG

• First Savings Financial Group reported net income of $2.3 million, or $0.34 per diluted share, for the quarter ended June 30, 2023. Larry W. Myers, President and CEO, said, “This challenging environment for the banking industry will pass, but as it persists we’re active to realign the balance sheet, stabilize the margin, manage expenses and make select investments in opportunities that will be fruitful in future quarters and years.” The company’s stock has a 52-week high of $24.09. .
• RSI Value: 70.40
• FSFG Price Action: Shares of First Savings Financial fell 4.1% to close at $17.27 on Thursday.

Provident Bancorp, Inc. PVBC

• Provident Bancorp reported better-than-expected second-quarter earnings. Carol Houle, Co-Chief Executive Officer and Chief Financial Officer said, "Net interest margin has declined significantly due to our cost of funds outpacing yield on assets. The ten rate hikes since the beginning of 2022, coupled with the speed in which deposits can be moved, has pressured banks to increase deposit rates at a faster pace to remain competitive." The company’s stock has a 52-week high of $15.34.
• RSI Value: 70.87
• PVBC Price Action: Shares of Provident Bancorp fell 1.9% to close at $9.77 on Thursday.

OFG Bancorp OFG

• OFG Bancorp posted better-than-expected second-quarter results. José Rafael Fernández, Chief Executive Officer, said, "The second quarter generated year-over-year increases of 16.5% in total core revenues and 10.7% in earnings per share. The period was highlighted by strong loan production, stable core deposits along with low cumulative deposit beta of 16% and increased operating leverage." The company has a 52-week high of $34.30.
• RSI Value: 72.46
• OFG Price Action: Shares of OFG Bancorp fell 1.1% to close at $33.28 on Thursday.

Medallion Financial Corp. MFIN

• Medallion Finl reported better-than-expected second-quarter financial results. Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Quarterly earnings surpassed our own expectations, largely due to strong collection activity on our legacy medallion portfolio and our borrowers’ ongoing resilience.” The company’s 52-week high is $10.14.
• RSI Value: 77.04
• MFIN Price Action: Shares of Medallion Financial fell 1.1% to close at $9.82 on Thursday.

Live Oak Bancshares, Inc. LOB

• Live Oak Bancshares posted upbeat quarterly results. “This is a seminal moment in Live Oak’s history,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “The last few months put mounting pressure on many financial institutions. While Live Oak sits in a unique and strong position, others across the industry still see headwinds as credit continues to tighten, the branch model remains costly, and customers demand higher deposit rates.” The company has a 52-week high of $43.72.
• RSI Value: 78.61
• LOB Price Action: Shares of Live Oak Bancshares fell 0.9% to settle at $37.09 on Thursday.

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