February 22, 2024 7:24 AM | 2 min read
The financial sector currently presents an opportunity to invest in undervalued companies. The RSI (Relative Strength Index) is a momentum indicator that compares a stock’s strength on days when prices go up to its strength on days when prices go down, offering insights on potential short-term performance. An asset is typically considered oversold when the RSI is below 30.
Let’s take a look at the major oversold players in the financial sector, with RSIs near or below 30.
New York Community Bancorp, Inc. NYCB
- On Jan. 31, New York Community Bancorp reported worse-than-expected fourth-quarter results,
diminishing its stock by around 56% over the past month to reach a 52-week low of $3.60. - RSI Value: 27.65
- NYCB Price Action: Shares closed at $4.50 on Wednesday, showing a 4.1% decline.
Ares Commercial Real Estate Corporation ACRE
- On Feb. 22, Ares Commercial Real Estate reported a significant GAAP net loss of $39.4
million, or 73 cents per diluted common share, leading to a 19% stock decline over the past
month to hit a 52-week low of $7.52. - RSI Value: 27.16
- ACRE Price Action: Shares closed at $8.19 on Wednesday, marking a 0.1%
decline.
Meridian Corporation MRBK
- On Jan. 26, Meridian posted disappointing quarterly earnings, leading to a 25% stock decrease
over the past month and a 52-week low of $7.80. - RSI Value: 26.45
- MRBK Price Action: Shares closed at $9.84 on Wednesday.
OptimumBank Holdings, Inc. OPHC
- On Feb. 5, OptimumBank ended the year with $13,808,107 in net income before credit loss and
tax expenses, or $7,254,285 including those expenses. The company’s shares decreased by
around 7% over the past month, hitting a 52-week low of $2.77. - RSI Value: 26.75
- OPHC Price Action: Shares closed at $4.2490 on Wednesday, reflecting a 4.4%
increase.
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