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.
Goosehead Insurance, Inc (NASDAQ: GSHD)
- BMO Capital analyst Michael Zaremski upgraded Goosehead Insurance from Market Perform to Outperform and raised the price target from $86 to $90. The company’s stock has a 52-week high of $76.36. .
- RSI Value: 72.85
- GSHD Price Action: Shares of Goosehead Insurance gained 2.1% to trade at $76.27 on Wednesday.
- Reuters reported UBS said S. Korea, India, Ireland and Saudi Arabia are slow in granting approvals related to Credit Suisse takeover. The company’s stock has a 52-week high of $26.97.
- RSI Value: 71.27
- UBS Price Action: Shares of UBS rose 1.3% to trade at $26.41 on Wednesday.
- TPG reported worse-than-expected second-quarter results. "Our second quarter results demonstrate the strength and durability of TPG’s business model, with fee-related earnings growth of 23% year-over-year to $125 million," said Jon Winkelried, Chief Executive Officer. The company has a 52-week high of $44.43.
- RSI Value: 70.68
- TPG Price Action: Shares of TPG gained 0.9% to trade at $ 31.35 on Wednesday.
- W. R. Berkley declared a special cash dividend on its common stock of $0.50 per share. The company’s 52-week high is $76.99.
- RSI Value: 70.80
- WRB Price Action: Shares of W. R. Berkley fell 0.1% to trade at $65.37 on Wednesday.
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