Benzinga - by Lisa Levin, Benzinga Editor. The most oversold stocks in the financial sector presents an opportunity to buy into undervalued 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 oversold when the RSI is below 30.
Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.
Hippo Holdings Inc. (NYSE: HIPO)
- Hippo Holdings reported worse-than-expected second-quarter EPS results. "Hippo remains on pace to turn adjusted EBITDA positive by late 2024," said Hippo President and CEO Rick McCathron. "While these are challenging times for both the industry and consumers, we believe our technological advantages provide the opportunity to surgically select attractive risks, deliver sustained growth, and continue to be a solution for many U.S. homeowners." The company’s stock has a 52-week low of $9.37 .
- RSI Value: 22.42
- HIPO Price Action: Shares of Hippo Holdings rose 1.6% to close at $10.14 on Wednesday.
- James River posted upbeat quarterly earnings. It has a 52-week low of $14.86.
- RSI Value: 29.82
- JRVR Price Action: Shares of James River Group rose 1.5% to close at $15.89 on Wednesday.
- Open Lending posted in-line earnings for the second quarter. “We are pleased to have reported results ahead of our expectations again in the second quarter, including the certification of 34,354 loans,” said Keith Jezek, CEO of Open Lending. The company’s stock has a 52-week low of $5.35.
- RSI Value: 27.12
- LPRO Price Action: Shares of Open Lending gained 1.5% to close at $8.34 on Wednesday.
- PRA Group posted a narrower-than-expected quarterly loss. Net sales beat the analyst consensus of $1.660 billion. The company’s 52-week low is $17.74.
- RSI Value: 28.06
- PRAA Price Action: Shares of PRA Group rose 0.6% to close at $19.24 on Wednesday.
- United Fire posted a loss for the second quarter. “Our second quarter results were impacted by reserve strengthening and seasonally elevated catastrophe losses,” said UFG President and CEO Kevin Leidwinger. The company has a 52-week low of $19.14.
- RSI Value: 26.22
- UFCS Price Action: Shares of United Fire Group gained 0.3% to close at $19.22 on Wednesday.
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