Top 2 Financials Stocks You May Want To Dump In August

As of Aug 13, 2024, two stocks in the financials 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.

Sezzle Inc SEZL

• On Aug. 7, Sezzle reported better-than-expected second-quarter financial results. “Our strategic efforts continued to pay off in the second quarter, as Net Income reached new highs driven by a combination of strong revenue growth and leveraging our operating infrastructure,” stated Charlie Youakim, Sezzle Chairman and CEO. “We are excited to raise our 2024 guidance, as we now expect Total Revenue to increase 35%-40% YoY (previous guidance of 25%), Net Income of $55.0 million (previous guidance of $30.0 million), and Adjusted Net Income of $40.0 million (new guidance).” The company's stock gained around 58% over the past five days and has a 52-week high of $126.04.
• RSI Value: 72.74                              
• SEZL Price Action: Shares of Sezzle closed at $118.36 on Monday.

Heritage Insurance Holdings Inc HRTG

• On Aug. 6, Heritage Insurance posted upbeat quarterly earnings. “First, on behalf of the entire Heritage family, we wish a swift and complete recovery to all of those impacted by Hurricane Debby.  Our team has been responding to policyholder needs and remains ready to provide outstanding claim service.  With regard to the second quarter, our strong results demonstrate the continued execution of our underwriting and rate adequacy initiatives over the last three years,” remarked Ernie Garateix, CEO at Heritage. The company's stock gained around 49% over the past five days and has a 52-week high of $11.48.
• RSI Value: 78.10
• HRTG Price Action: Shares of Heritage Insurance closed at $10.76 on Monday.

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