Benzinga - by Lisa Levin, Benzinga Editor.
The most overbought stocks in the financial sector presents an opportunity to go short on these overvalued companies.
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.
Here’s the latest list of major overbought players in this sector.
Assurant, Inc. (NYSE: AIZ)
- Assurant reported better-than-expected third-quarter sales results. The company’s stock has a 52-week high of $167.81. .
- RSI Value: 73.54
- AIZ Price Action: Shares of Assurant fell 1.6% to close at $163.79 on Thursday.
- Mercury General reported a year-over-year increase in third-quarter adjusted EPS results. The company’s stock has a 52-week high of $39.47.
- RSI Value: 79.92
- MCY Price Action: Shares of Mercury General fell 1.4% to close at $37.01 on Thursday.
- Universal Insurance posted a narrower-than-expected quarterly loss. The company has a 52-week high of $20.15.
- RSI Value: 73.18
- UVE Price Action: Shares of Universal Insurance fell 1% to close at $16.03 on Thursday.
- Avantax entered an agreement to be acquired by Cetera Holdings for $26 per share in cash. The company’s 52-week high is $30.23.
- RSI Value: 70.68
- AVTA Price Action: Shares of Avantax closed at $25.83 on Thursday.
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