Top 3 Financial Stocks That May Implode In February

As of Feb. 28, 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.

Flywire Corporation FLYW

• On Feb. 27, Flywire reported better-than-expected fourth-quarter financial results. “Our strong fourth quarter results, which included nearly 43% year over year growth in revenue less ancillary services, capped off an exceptional year for Flywire as we continue to show strong performance across the business,” said Mike Massaro, CEO of Flywire. The company’s stock gained around 9% over the past five days and has a 52-week high of $35.80 .
• RSI Value: 82.01
• FLYW Price Action: Shares of Flywire gained 1.7% to close at $24.52 on Tuesday.

Sezzle Inc. SEZL

• On Feb. 26, Sezzle reported fourth-quarter financial results and issued FY24 guidance. The company’s stock gained around 44% over the past month and has a 52-week high of $81.08.
• RSI Value: 74.43
• SEZL Price Action: Shares of Sezzle jumped 20% to close at $57.90 on Tuesday.

Lufax Holding Ltd LU

• On Jan. 2, Morgan Stanley analyst Richard Xu maintained Lufax with an Equal-Weight and raised the price target from $3 to $4.8. The company’s stock gained around 13% over the past five days and has a 52-week high of $9.80.
• RSI Value: 73.74
• LU Price Action: Shares of Lufax Holding gained 6.6% to close at $3.05 on Tuesday.

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