Top 4 Financial Stocks That May Implode This Quarter

Editor's Note: Benzinga corrected the date within the MoneyLion section to reflect Thursday's trading action. Additionally, editors clarified that MoneyLion in its Nov 7 earnings report missed Wall Street expectations for revenue and full year guidance and that shares ended that day lower.

As of Jan. 5, 2024, four stocks in the financial 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.

X Financial XYF

• On Nov. 22, X Financial reported third-quarter adjusted earnings per ADS of $1.04 and sales of $191.50 million. Mr. Justin Tang, the Founder, Chief Executive Officer and Chairman of the Company, commented, "We are pleased to see that our established strategy continued to deliver strong results in the third quarter. Our loan facilitation and origination amount reached the high end of our previous guidance, and both our top line and bottom line showed substantial year-over-year improvement." The company’s stock jumped around 16% over the past five days and has a 52-week high of $5.00 .
• RSI Value: 71.36
• XYF Price Action: Shares of X Financial gained 8.4% to close at $4.27 on Thursday.

Tradeweb Markets Inc. TW

• On Jan. 4, Tradeweb Markets reported December trading volume data. Average daily volume grew 43.3% year-over-year. Billy Hult, Tradeweb CEO, said "Historic interest rate moves, geopolitical uncertainty and ongoing market volatility helped drive a 2023 resurgence in fixed income. Despite a challenging start to the year, we reported a 27.6% YoY increase in average daily volume for the full year and broke numerous volume records across rates, credit, equities and money markets." The company’s stock gained around 5% over the past five days and has a 52-week high of $97.18.
• RSI Value: 71.68
• TW Price Action: Shares of Tradeweb Markets rose 6.9% to close at $95.10 on Thursday.

MoneyLion Inc. ML

• On Nov. 7, MoneyLion posted its quarterly results, which missed Wall Street revenue expectations for both the quarter and the full year outlook. Alongside those results, Dee Choubey, MoneyLion’s co-founder and Chief Executive Officer said, "MoneyLion had another record quarter in Q3 2023, demonstrating the strength and resilience of our business model. We continue to leverage our compounding proprietary data sets through various customer insights, and we continue to innovate our technology by developing and releasing new product features that exist within our consumer-facing Personal Financial Management product set and are also available to our 1,100+ Enterprise Partners." After initially closing lower after results on November 7, the company’s stock has since rebounded, rising over 48% over the past month and has a 52-week high of $66.47.
• RSI Value: 75.87
• ML Price Action: Shares of MoneyLion gained 3.4% to close at $63.40 on Thursday.

FS KKR Capital Corp. FSK

• On Nov. 14, FSK priced public offering of $400 million 7.875% Unsecured Notes due 2029. The company’s stock gained around 4% over the past five days and has a 52-week high is $20.99.
• RSI Value: 77.62
• FSK Price Action: Shares of FS KKR Capital gained 3.1% to close at $20.89 on Thursday.

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