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Three Beaten-Down Financial Stocks Trading at Oversold Levels

MarketDash Editorial Team
21 days ago
When stocks in the financial sector get oversold, they can present opportunities for value-focused investors. Three companies are currently showing RSI readings below 30, a technical signal that often indicates a stock has been hammered down too far, too fast.

When stocks get beaten down hard enough, sometimes the market's pessimism creates an opening. That's the theory behind looking at oversold stocks in the financial sector, where a few companies have been pummeled to levels that might interest bargain hunters.

The Relative Strength Index, or RSI, is a momentum indicator that compares how a stock performs on up days versus down days. It's basically a way to measure whether something has been knocked around too much in the short term. When the RSI drops below 30, traders typically consider an asset oversold—meaning it might be due for a bounce, or at least worth a closer look.

Here are three financial stocks currently sitting at or near that oversold threshold, each with their own story about why they've taken a beating lately.

Trupanion Inc (TRUP)

Trupanion Inc. (TRUP) just posted better-than-expected quarterly earnings on November 6, which you'd think would be good news. CEO and President Margi Tooth certainly sounded upbeat: "We delivered record quarterly profitability while accelerating subscription pet growth for the third consecutive quarter. With a strong financial foundation, we have the flexibility to invest where it matters most—driving sustainable growth and expanding access to care. Our disciplined model continues to generate meaningful cash flow, positioning us to build on this momentum in the quarters ahead."

Despite the positive earnings surprise and management's optimistic tone, the stock has dropped about 12% over the past month. Shares hit a 52-week low of $31.00 during that slide, and the current RSI sits at 29.6—firmly in oversold territory.

On Friday, Trupanion shares fell another 4.2% to close at $37.74. The stock carries a momentum score of 14.26 and a value score of 53.79, reflecting the recent weakness but also suggesting there might be some value emerging at these levels.

LendingTree Inc (TREE)

LendingTree Inc. (TREE) reported third-quarter results on October 30 that beat estimates, and the company even raised its full-year 2025 sales guidance. Normally that's the kind of news that sends a stock higher, not lower.

But these weren't normal circumstances. The company announced the sudden passing of founder, Chairman, and CEO Doug Lebda, a loss that clearly shook the organization. New CEO Scott Peyree said in a statement: "We are incredibly saddened by the sudden passing of our founder, Chairman and CEO Doug Lebda. Doug was a visionary entrepreneur who created the financial services comparison shopping industry nearly 30 years ago when he founded LendingTree."

The stock has fallen roughly 14% over the past month despite the solid earnings beat and raised guidance. It touched a 52-week low of $33.50 during that period. With an RSI of 29.2, LendingTree is another oversold name in the financial sector.

Shares dropped 3.1% on Friday, closing at $49.12. The technical weakness is evident, but the fundamental performance—at least in the most recent quarter—tells a different story about the business itself.

Manhattan Bridge Capital Inc (LOAN)

Manhattan Bridge Capital Inc. (LOAN) posted disappointing quarterly earnings on October 24, so unlike the first two stocks on this list, the selloff here makes more intuitive sense.

Chairman and CEO Assaf Ran offered a mixed assessment of the quarter: "The good news is that paid off loans during the third quarter exceeded our average, reflecting the strength and high quality of our loans even in rough times. However, the slow real estate markets in the geographic areas in which we operate causes longer time to redevelopment. Thus the decline in revenue and income. We continue to work tirelessly to deploy the available funds into safe and secure loans."

The company is dealing with challenging real estate market conditions that are extending project timelines and pressuring revenue. The stock has declined about 11% over the past month, hitting a 52-week low of $4.65. At an RSI of 28.9, Manhattan Bridge Capital has the lowest reading of the three stocks profiled here.

On Friday, shares fell 5.1% to close at $4.65—right at that 52-week low level. The question for investors is whether management's emphasis on loan quality will matter more than the near-term revenue headwinds as real estate markets eventually recover.

An oversold reading doesn't guarantee a stock will bounce back, of course. Sometimes stocks are oversold for good reasons, and they can stay that way longer than you'd expect. But for investors willing to dig into the fundamentals and take a contrarian view, these three financial stocks are at least worth examining more closely. The RSI is simply highlighting that they've been knocked down hard—what you do with that information is up to you.

Back to News

Three Beaten-Down Financial Stocks Trading at Oversold Levels

MarketDash Editorial Team
21 days ago
When stocks in the financial sector get oversold, they can present opportunities for value-focused investors. Three companies are currently showing RSI readings below 30, a technical signal that often indicates a stock has been hammered down too far, too fast.

When stocks get beaten down hard enough, sometimes the market's pessimism creates an opening. That's the theory behind looking at oversold stocks in the financial sector, where a few companies have been pummeled to levels that might interest bargain hunters.

The Relative Strength Index, or RSI, is a momentum indicator that compares how a stock performs on up days versus down days. It's basically a way to measure whether something has been knocked around too much in the short term. When the RSI drops below 30, traders typically consider an asset oversold—meaning it might be due for a bounce, or at least worth a closer look.

Here are three financial stocks currently sitting at or near that oversold threshold, each with their own story about why they've taken a beating lately.

Trupanion Inc (TRUP)

Trupanion Inc. (TRUP) just posted better-than-expected quarterly earnings on November 6, which you'd think would be good news. CEO and President Margi Tooth certainly sounded upbeat: "We delivered record quarterly profitability while accelerating subscription pet growth for the third consecutive quarter. With a strong financial foundation, we have the flexibility to invest where it matters most—driving sustainable growth and expanding access to care. Our disciplined model continues to generate meaningful cash flow, positioning us to build on this momentum in the quarters ahead."

Despite the positive earnings surprise and management's optimistic tone, the stock has dropped about 12% over the past month. Shares hit a 52-week low of $31.00 during that slide, and the current RSI sits at 29.6—firmly in oversold territory.

On Friday, Trupanion shares fell another 4.2% to close at $37.74. The stock carries a momentum score of 14.26 and a value score of 53.79, reflecting the recent weakness but also suggesting there might be some value emerging at these levels.

LendingTree Inc (TREE)

LendingTree Inc. (TREE) reported third-quarter results on October 30 that beat estimates, and the company even raised its full-year 2025 sales guidance. Normally that's the kind of news that sends a stock higher, not lower.

But these weren't normal circumstances. The company announced the sudden passing of founder, Chairman, and CEO Doug Lebda, a loss that clearly shook the organization. New CEO Scott Peyree said in a statement: "We are incredibly saddened by the sudden passing of our founder, Chairman and CEO Doug Lebda. Doug was a visionary entrepreneur who created the financial services comparison shopping industry nearly 30 years ago when he founded LendingTree."

The stock has fallen roughly 14% over the past month despite the solid earnings beat and raised guidance. It touched a 52-week low of $33.50 during that period. With an RSI of 29.2, LendingTree is another oversold name in the financial sector.

Shares dropped 3.1% on Friday, closing at $49.12. The technical weakness is evident, but the fundamental performance—at least in the most recent quarter—tells a different story about the business itself.

Manhattan Bridge Capital Inc (LOAN)

Manhattan Bridge Capital Inc. (LOAN) posted disappointing quarterly earnings on October 24, so unlike the first two stocks on this list, the selloff here makes more intuitive sense.

Chairman and CEO Assaf Ran offered a mixed assessment of the quarter: "The good news is that paid off loans during the third quarter exceeded our average, reflecting the strength and high quality of our loans even in rough times. However, the slow real estate markets in the geographic areas in which we operate causes longer time to redevelopment. Thus the decline in revenue and income. We continue to work tirelessly to deploy the available funds into safe and secure loans."

The company is dealing with challenging real estate market conditions that are extending project timelines and pressuring revenue. The stock has declined about 11% over the past month, hitting a 52-week low of $4.65. At an RSI of 28.9, Manhattan Bridge Capital has the lowest reading of the three stocks profiled here.

On Friday, shares fell 5.1% to close at $4.65—right at that 52-week low level. The question for investors is whether management's emphasis on loan quality will matter more than the near-term revenue headwinds as real estate markets eventually recover.

An oversold reading doesn't guarantee a stock will bounce back, of course. Sometimes stocks are oversold for good reasons, and they can stay that way longer than you'd expect. But for investors willing to dig into the fundamentals and take a contrarian view, these three financial stocks are at least worth examining more closely. The RSI is simply highlighting that they've been knocked down hard—what you do with that information is up to you.