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, according to Benzinga Pro.
Here's the latest list of major oversold players in this sector, having an RSI near or below 30.
Heritage Insurance Holdings Inc (NYSE:HRTG)
- On May 1, Heritage Insurance Holdings reported worse-than-expected first-quarter EPS. "I'm pleased to see the momentum of our efforts to respond to market conditions continues to produce our intended results," remarked Ernie Garateix, CEO at Heritage. "Our average premium has increased across the book of business, and we believe the quality of our book of business continues to improve." The company's stock fell around 21% over the past month and has a 52-week low of $3.87.
- RSI Value: 27.01
- HRTG Price Action: Shares of Heritage Insurance gained 1.7% to close at $6.47 on Wednesday.
- Benzinga Pro's real-time newsfeed alerted to latest Heritage Insurance's news.
Fanhua Inc – ADR (NASDAQ:FANH)
- On June 3, Fanhua disclosed a strategic partnership with Baidu AI Cloud for application of large model in insurance distribution. Mr. Yinan Hu, co-founder, Vice Chairman and Chief Executive Officer of Fanhua said, "We are excited about the strategic partnership with Baidu. As a leading global AI company, Baidu has made numerous technological accomplishments and strong innovative capabilities in artificial intelligence, making this partnership a tremendous new growth opportunity for us." The company's stock fell around 20% over the past five days. It has a 52-week low of $1.76.
- RSI Value: 14.91
- FANH Price Action: Shares of Fanhua fell 1.1% to close at $1.78 on Wednesday.
- Benzinga Pro's charting tool helped identify the trend in Fanhua's stock.
Future Fintech Group Inc (NASDAQ:FTFT)
- On April 30, Future FinTech entered into a new bitcoin mining hosting agreement for its cryptocurrency farm in Norwalk, Ohio. The company's stock fell around 42% over the past month and has a 52-week low of $0.41.
- RSI Value: 23.07
- FTFT Price Action: Shares of Future Fintech fell 5.1% to close at $0.46 on Wednesday.
- Benzinga Pro's signals feature notified of a potential breakout in Future Fintech's shares.
Read More: S&P 500 Settles At New Record Even As Fear & Greed Index Moves To 'Fear' Zone