As of Nov. 8, 2024, three stocks in the financials 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.

Upstart Holdings Inc UPST

• On Nov. 7, Upstart reported quarterly losses of seven cents per share which beat the analyst consensus estimate for losses of 15 cents. Quarterly revenue came in at $162.14 million which beat the analyst consensus estimate of $150.22 million and is an increase over sales of $134.55 million from the same period last year. “With 43% sequential growth in lending volume and a return to positive adjusted EBITDA, we continue to strengthen Upstart’s position as the fintech leader in artificial intelligence,” said Dave Girouard, CEO of Upstart. “Even without a significant boost from the macroeconomy, we’re back in growth mode.” The company’s stock gained around 29% over the past month and has a 52-week high of $57.31.
• RSI Value: 79.08                              
• UPST Price Action: Shares of Upstart gained 2.8% to close at $55.47 on Thursday.

Toast Inc TOST

• On Nov. 7, Toast reported better-than-expected third-quarter financial results. “Toast delivered a strong third quarter, adding approximately 7,000 net new locations, growing our recurring gross profit streams1 35%, and achieving Adjusted EBITDA of $113 million. We are well positioned to finish out the year strong and carry this momentum into 2025,” said Toast CEO and Co-Founder Aman Narang. The company’s stock gained around 13% over the past month and has a 52-week high of $33.00.
• RSI Value: 85.15
• TOST Price Action: Shares of Toast gained 1.7% to close at $32.67 on Thursday.

Flywire Corp FLYW

• On Nov. 7, Flywire reported better-than-expected third-quarter financial results and issued FY24 revenue guidance above estimates. “Our third quarter results highlight our ability to capture higher payment volumes with new and existing clients, signaling the growth potential within our accounts and verticals.” said Mike Massaro, CEO of Flywire The company’s stock gained around 11% over the past month and has a 52-week high of $31.54.
• RSI Value: 77.08
• FLYW Price Action: Shares of Flywire gained 2% to close at $18.30 on Thursday.

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