Top 5 Financial Stocks That May Crash In Q1

As of Feb. 14, 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.

Robinhood Markets, Inc. HOOD

• On Feb. 13, Robinhood reported fourth-quarter revenue of $471 million, which was up 24% year-over-year. The revenue beat a Street consensus estimate of $456.8 million, according to data from Benzinga Pro. "2023 was a strong year as our product velocity continued to accelerate, our trading market share increased, and we started to expand globally," Robinhood CEO Vlad Tenev said. The company’s stock gained around 9% over the past five days and has a 52-week high of $13.51 .
• RSI Value: 70.43
• HOOD Price Action: Shares of Robinhood fell 1.4% to close at $11.84 on Tuesday.

Mercury General Corporation MCY

• On Feb. 13, Mercury General posted upbeat quarterly results. The company’s stock gained around 3% over the past five days and has a 52-week high of $41.90.
• RSI Value: 71.79
• MCY Price Action: Shares of Mercury General gained 0.1% to close at $40.37 on Tuesday.

Katapult Holdings, Inc. KPLT

• On Feb. 1, Katapult Holdings said it sees preliminary fourth-quarter revenue of $58.0 million. The company’s stock gained around 32% over the past month and has a 52-week high of $26.50.
• RSI Value: 71.00
• KPLT Price Action: Shares of Katapult fell 3.7% to close at $13.95 on Tuesday.

American Express Company AXP

• On Jan. 26, American Express said fiscal fourth-quarter revenue 2023 (net of interest expense) grew 11% year-on-year to $15.8 billion, missing the consensus of $16.0 billion. The company’s stock jumped around 16% over the past month and has a 52-week high is $214.25.
• RSI Value: 71.90
• AXP Price Action: Shares of American Express fell 1.2% to close at $209.67 on Tuesday.

The Travelers Companies, Inc. TRV

• On Jan. 19, Travelers Companies reported record fourth-quarter earnings surpassing the analysts’ expectations. “Core income, earnings per share, and return on equity were all record highs for the quarter, driven by both underwriting and investment results,” chairman and CEO Alan Schnitzer commented. The company’s stock jumped around 10% over the past month and has a 52-week high of $216.56.
• RSI Value: 75.27
• TRV Price Action: Shares of Travelers gained 0.6% to close at $215.95 on Tuesday.

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