Top 3 Financial Stocks That May Collapse In Q1

As of Feb. 19, 2025, three 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.

Sezzle Inc (NASDAQ:SEZL)

• Sezzle will release its fourth quarter 2024 results after the closing bell on Feb. 25, 2025. The company's stock gained around 51% over the past month and has a 52-week high of $475.77.
• RSI Value: 74.6                                
• SEZL Price Action: Shares of Sezzle gained 2.3% to close at $347.98 on Tuesday.

LexinFintech Holdings Ltd – ADR (NASDAQ:LX)

• On Nov. 25, 2024, LexinFintech announced its board approved an amendment for a dividend policy to increase the payout ratio. Also, the company reported third-quarter financial results. The company's stock gained around 33% over the past month and has a 52-week high of $9.00.
• RSI Value: 71.7
• LX Price Action: Shares of LexinFintech gained 6.5% to close at $8.73 on Tuesday.

Brighthouse Financial Inc (NASDAQ:BHF)

• On Feb. 11, Brighthouse Financial posted better-than-expected fourth-quarter financial results. “During the quarter, we continued to make progress on our capital-focused strategic initiatives, including completing a reinsurance transaction with a third party to reinsure a legacy block of universal life and variable universal life products and fully transitioning to hedging all new business for our Shield Level Annuities Product Suite on a standalone basis,” said Eric Steigerwalt, president and CEO, Brighthouse Financial. The company's stock gained around 22% over the past month and has a 52-week high of $64.00.
• RSI Value: 75.9
• BHF Price Action: Shares of Brighthouse Financial gained 1.1% to close at $62.81 on Tuesday.

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