Exploring Oversold Stocks: Opportunities in Financials Sector

Investors seeking undervalued companies might find a promising opportunity amidst some of the most oversold stocks in the financial sector.

The Relative Strength Index (RSI) is a key momentum indicator that helps investors gauge a stock’s performance. It compares the strength of price increases to that of declines. Stocks are generally considered oversold when their RSI falls below 30, a threshold suggested by Benzinga Pro.

Below are significant players in the financial sector with an RSI near or below 30.

Western Union Co WU

• On Oct. 23, Western Union announced quarterly results that surpassed expectations. Devin McGranahan, President and CEO, stated, “We are pleased with third quarter results, which demonstrate continued progress of our Evolve 2025 strategy.” The company has seen consistent mid-single digit transaction growth in its Consumer Money Transfer business over the last five quarters. However, its stock has declined about 8% in the past month, reaching a 52-week low of $10.69.
• RSI Value: 27.25
• WU Price Action: Shares of Western Union dipped 0.2% to close at $10.74 on Friday.
• Benzinga Pro’s real-time newsfeed highlighted the latest developments for WU.

AGNC Investment Corp AGNC

• On Oct. 31, AGNC Investment reported a third-quarter comprehensive income of 63 cents per share. Peter Federico, President and CEO, remarked, “AGNC generated a very strong economic return of 9.3% in the third quarter, driven by significant book value growth.” This company has maintained its monthly dividend at $0.12 for 55 consecutive months. However, its stock has seen a 7% drop in the last five days, with a 52-week low of $7.85.
• RSI Value: 25.31
• AGNC Price Action: Shares of AGNC Investment closed at $9.31 on Friday.
• Benzinga Pro’s charting tool identified trends in AGNC stock.

Essent Group Ltd ESNT

• On Nov. 1, Essent Group released disappointing third-quarter earnings, missing EPS and revenue expectations. Mark A. Casale, Chairman and CEO, stated, “We are pleased with our third quarter financial results, as we continue to generate high quality earnings.” Over the past month, the company’s stock has dropped by about 15%, landing at a 52-week low of $47.37.
• RSI Value: 18.57
• ESNT Price Action: Shares of Essent Group fell 10.4% to close at $53.77 on Friday.
• Benzinga Pro’s signals feature indicated a potential breakout for ESNT shares.

UWM Holdings Corp UWMC

• UWM Holdings is set to announce its third-quarter results on Thursday, Nov. 7. In the prior month, the company’s shares plummeted by 20%, with a 52-week low of $5.01.
• RSI Value: 20.90
• UWMC Price Action: Shares of UWM Holdings closed down 2.3% at $6.29 on Friday.
• Benzinga Pro’s earnings calendar is monitoring UWMC’s upcoming earnings announcement.

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