Top 5 Financial Stocks You May Want To Dump In Q2

As of May 23, 2024, five 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.

Aegon Ltd. AEG

• On May 16, Aegon reported a planned new € 200 million share buyback program. The company's stock gained around 10% over the past month and has a 52-week high of $6.96.
• RSI Value: 73.01                              
• AEG Price Action: Shares of Aegon fell 1.2% to close at $6.79 on Wednesday.

Brown & Brown, Inc. BRO

• On April 22, Brown & Brown posted better-than-expected first-quarter results. J. Powell Brown, President and Chief Executive Officer of the Company, noted, “Our teammates delivered strong organic revenue growth and margin expansion in the first quarter of 2024. We are very pleased with the start of the year.” The company's stock gained around 10% over the past month and has a 52-week high </em></a> of $91.70.
• RSI Value: 81.26
• BRO Price Action: Shares of Brown & Brown rose 1.5% to close at $91.16 on Wednesday.

Arthur J. Gallagher & Co. AJG

• On April 25, Arthur J. Gallagher posted mixed quarterly results. “We had a great first quarter to begin 2024” said J. Patrick Gallagher, Jr., Chairman and CEO. The company's stock gained around 8% over the past month and has a 52-week high of $259.35.
• RSI Value: 73.11
• AJG Price Action: Shares of Arthur J. Gallagher fell 0.1% to close at $257.65 on Wednesday.

Hamilton Insurance Group, Ltd. HG

• On May 8, Hamilton Insurance Group posted upbeat quarterly results. Pina Albo, CEO of Hamilton said, “I am very proud of Hamilton’s financial results for the first quarter. Not only did we generate strong underwriting and investment returns but also, this quarter marks our sixth consecutive quarter of underwriting profitability.” The company's stock jumped around 20% over the past month and has a 52-week high is $17.16.
• RSI Value: 73.14
• HG Price Action: Shares of Hamilton Insurance rose 1.2% to close at $16.84 on Wednesday.

Moody’s Corporation MCO

• On May 2, Moody’s posted upbeat quarterly earnings. “Our strong first quarter financial performance is a testament to the unique power of our franchise, delivering tremendous operating leverage as issuance markets rebound, enabling us to fund innovation and investment in our business while delivering strong earnings growth,” said Rob Fauber, President and Chief Executive Officer of Moody’s. The company's stock jumped around 9% over the past month and <a href=”https://www.benzinga.com/quote/MCO”><em> has a 52-week high </em></a> of $417.75.
• RSI Value: 73.02
• MCO Price Action: Shares of Moody’s rose 0.5% to close at $415.09 on Wednesday.

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