Top 3 Financials Stocks That May Implode This Quarter

As of Oct. 24, 2024, three 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.

National Bank Holdings Corp NBHC

• On Oct. 22, National Bank Holdings posted better-than-expected quarterly earnings. Chief Executive Officer Tim Laney said, “We delivered quarterly earnings of $0.86 per diluted share and a return on average tangible common equity of 14.84%. On the strength of our balance sheet, capital position and earnings, we are pleased to announce a 3.6% increase in our quarterly dividend to $0.29 per share. During the quarter, our disciplined approach to loan and deposit pricing drove 11 basis points of net interest margin expansion to 3.87%. Our teams delivered solid quarterly growth in our core banking fees, and we continued to leverage our diverse revenue streams across our franchise resulting in meaningful year-to-date fee income growth.” The company's stock gained around 8% over the past month and has a 52-week high of $46.52.
• RSI Value: 72.16                              
• NBHC Price Action: Shares of National Bank gained 7.6% to close at $45.05 on Wednesday.

East West Bancorp Inc EWBC

• On Oct. 22, East West Bancorp reported better than-expected third-quarter financial results. “East West reported another strong quarter of balanced growth in support of our customers,” said Dominic Ng, Chairman and Chief Executive Officer. “We continued to grow consumer and business banking deposits while further diversifying our loan portfolio by emphasizing residential and C&I lending,” Ng continued. “Net interest income and fee income both accelerated meaningfully in the quarter, underscoring the strength of our business model.” The company's stock gained around 18% over the past month and has a 52-week high of $98.95.
• RSI Value: 78.02
• EWBC Price Action: Shares of East West Bancorp rose 5.8% to close at $95.63 on Wednesday.

Northern Trust Corp NTRS

• On Oct. 23, Northern Trust reported better-than-expected quarterly financial results. The company's stock gained around 12% over the past month and has a 52-week high of $104.25.
• RSI Value: 86.94
• NTRS Price Action: Shares of Northern Trust gained 7% to close at $102.51 on Wednesday.

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