Top 5 Financial Stocks That May Crash This Quarter

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.

Lemonade, Inc. (NYSE: LMND)

• Lemonade recently reported renewal of reinsurance program. The company’s stock has a 52-week high of $32.97. .
• RSI Value: 71.84
• LMND Price Action: Shares of Lemonade fell 4% to close at $23.13 on Thursday.

Credit Acceptance Corporation (NASDAQ: CACC)

• Credit Acceptance reported worse-than-expected first-quarter sales results.. The company’s stock has a 52-week high of $617.44.
• RSI Value: 71.05
• CACC Price Action: Shares of Credit Acceptance fell 3.3% to close at $554.67 on Thursday.

Customers Bancorp, Inc. (NYSE: CUBI)

• DA Davidson maintained Customers Bancorp with a Buy and raised the price target from $40 to $42. The company has a 52-week high of $41.08.
• RSI Value: 77.11
• CUBI Price Action: Shares of Customers Bancorp fell 3.1% to close at $39.20 on Thursday.

Metropolitan Bank Holding Corp. (NYSE: MCB)

• Metropolitan Bank Holding posted downbeat quarterly results. Mark DeFazio, President and Chief Executive Officer, commented, “I am pleased with how MCB navigated a turbulent quarter for the banking industry. The strength and stability of our balance sheet, not to mention the sustainability of our business model, are very apparent in the second quarter's successful deposit and loan growth.” The company’s 52-week high is $80.37.
• RSI Value: 73.59
• MCB Price Action: Shares of Metropolitan Bank Holding fell 2.9% to close at $46.14 on Thursday.

FB Financial Corporation (NYSE: FBK)

• FB Financial reported better-than-expected second-quarter EPS results. President and Chief Executive Officer, Christopher T. Holmes stated, “We boosted our balance sheet strength during the quarter so the Company is prepared regardless of whether the future brings challenges or opportunities.” The company has a 52-week high of $45.25.
• RSI Value: 70.43
• FBK Price Action: Shares of FB Financial fell 2.5% to settle at $33.11 on Thursday.

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