As of March 13, 2024, four 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.
Paymentus Holdings, Inc. (NYSE:PAY)
- On March 4, Paymentus reported quarterly earnings of 11 cents per share which beat the analyst consensus estimate of 7 cents per share. “Paymentus again reported quarterly results that exceeded our original expectations as revenue rose 24.7%, contribution profit grew 22.7% and adjusted EBITDA was up 95.4% year-over-year. We also ended the year on solid footing with a strong backlog, which we believe leaves us well positioned for continued growth in 2024,” said Dushyant Sharma, CEO of Paymentus Holdings. The company’s stock gained around 19% over the past five days and has a 52-week high of $24.00 .
- RSI Value: 82.24
- PAY Price Action: Shares of Paymentus gained 14.9% to close at $23.93 on Tuesday.
Toast, Inc. (NYSE:TOST)
- On Feb. 15, Toast reported quarterly losses of 7 cents per share, which beat the analyst consensus estimate of losses of 11 cents per share by 36.36%. The company’s board of directors also authorized a share repurchase program of up to $250 million of its Class A common stock. The company’s stock gained around 29% over the past month and has a 52-week high of $27.00.
- RSI Value: 72.43
- TOST Price Action: Shares of Toast gained 1.4% to close at $25.00 on Tuesday.
Coinbase Global, Inc. (NASDAQ:COIN)
- On March 12, Coinbase Global announced a proposed private offering of $1 billion of convertible senior notes due 2030. The company’s stock gained around 82% over the past month has a 52-week high of $271.65.
- RSI Value: 77.65
- COIN Price Action: Shares of Coinbase Global gained 0.8% to close at $256.14 on Tuesday.
Lloyds Banking Group plc (NYSE:LYG)
- On Feb. 22, Lloyds Banking Group reported a year-over-year increase in fourth-quarter adjusted EPS results. The company’s stock jumped around 24% over the past month and has a 52-week high is $2.53.
- RSI Value: 79.27
- LYG Price Action: Shares of Lloyds Banking rose 0.4% to close at $2.51 on Tuesday.
Read More: Investor Sentiment Improves Following Inflation Data, Dow Jumps Over 200 Points
