Top 3 Financial Stocks That May Implode In Q1

As of Jan. 19, 2024, three 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.

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 jumped around 3% over the past month and has a 52-week high of $20.99 .
• RSI Value: 73.57
• FSK Price Action: Shares of FS KKR Capital gained 1.1% to close at $20.59 on Thursday.

Lazard, Inc. LAZ

• On Jan. 11, 2024, Lazard said preliminary assets under management were 246.7 billion as of Dec. 31, 2023. The company’s stock gained around 9% over the past month and has a 52-week high of $43.44.
• RSI Value: 78.45
• LAZ Price Action: Shares of Lazard fell 0.5% to close at $38.10 on Thursday.

Stellus Capital Investment Corporation SCM

• On Jan. 8, B. Riley Securities analyst Bryce Rowe downgraded Stellus Cap Investment from Neutral to Sell and announced a $13 price target. The company’s stock gained around 2% over the past month and has a 52-week high of $16.08.
• RSI Value: 71.32
• SCM Price Action: Shares of Stellus Capital Investment rose 0.5% to close at $13.03 on Thursday.

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