Marketdash
Back to News

Three Oversold Financial Stocks Worth Watching This Month

MarketDash Editorial Team
8 hours ago
When stocks in the financial sector get beaten down, savvy investors start paying attention. These three companies are showing RSI readings below 30, traditionally a sign that selling pressure may have gone too far. Here's what's happening with each of them and why they might be worth a closer look.

When stocks get hammered relentlessly, there's usually a moment when the selling becomes overdone. That's where the Relative Strength Index comes in handy. The RSI is a momentum indicator that compares how a stock performs on up days versus down days. When the RSI drops below 30, it traditionally signals that an asset might be oversold, meaning the market may have gotten a bit too pessimistic.

Right now, three financial sector stocks are flashing these oversold signals. Let's dig into what's happening with each one and whether the beaten-down prices might represent opportunity.

Noah Holdings Limited (NOAH)

Noah Holdings posted some encouraging quarterly numbers back on November 25. The company's profitability grew substantially even as the stock took a beating, falling roughly 10% over the past month to trade near its 52-week low of $7.67.

Ms. Jingbo Wang, Co-founder and Chairwoman of Noah, expressed satisfaction with the results: "We are pleased to report strong growth in profitability during the third quarter as we continue to build on the strong momentum from the previous period. While net revenues increased slightly on a sequential basis to RMB632.9 million, non-GAAP net income grew significantly to RMB229.1 million, a robust 52.2% year-over-year increase."

That's a pretty solid earnings story, which makes the stock's decline all the more interesting. Sometimes the market focuses on concerns that don't show up immediately in the numbers.

RSI Value: 26.1

Recent Price Action: Shares of Noah Holdings fell 1% to close at $9.64 on Tuesday.

Technical Metrics: The stock shows a Momentum score of 16.36 with a Value score of 86.89, suggesting strong value characteristics despite weak momentum.

Ready Capital Corp (RC)

Ready Capital has had a rougher go of it. The company posted weaker-than-expected third-quarter results back on November 6, and the stock has declined about 12% over the past month. It's now trading close to its 52-week low of $2.13.

Thomas Capasse, Ready Capital's Chairman and Chief Executive Officer, didn't sugarcoat the situation: "Our primary focus continues to be restoring financial health. Through our decisive exit strategies for our underperforming loan and real estate exposure and risk management of our upcoming debt maturities, we believe we are on the path to balance sheet stability and profitability."

When management talks about "restoring financial health," you know the company is working through some issues. But for contrarian investors, that's sometimes exactly when opportunities emerge, particularly when the RSI suggests the selling may have been excessive.

RSI Value: 26.1

Recent Price Action: Shares of Ready Capital fell 4.7% to close at $2.22 on Tuesday.

X Financial (XYF)

X Financial has been hit hardest of the three, with shares plummeting about 41% over the past month. The stock is trading just above its 52-week low of $6.47, and the company is dealing with a challenging operating environment.

On November 20, X Financial reported third-quarter total net revenue of $275.5 million (RMB1,961.0 million), which represented a 23.9% increase year-over-year but a 13.7% decline quarter-over-quarter. That sequential decline tells you something about the current headwinds.

Kent Li, President of X Financial, laid out the situation: "Q3 reflected a more challenging operating environment. Loan origination declined from Q2 highs, borrower activity moderated, and delinquency rates increased across key categories. While profitability came under pressure from higher provisions and rising operating costs, we continue to prioritize risk control, collection efficiency, and disciplined execution. Our focus remains on maintaining credit quality, liquidity stability, and long-term competitiveness amid shifting market and regulatory conditions."

Rising delinquency rates in a lending business are never what you want to hear, but the company appears focused on the right priorities. Whether they can execute successfully is the question that could determine if this oversold situation represents value or a value trap.

RSI Value: 25.2

Recent Price Action: Shares of X Financial fell 3.6% to close at $6.63 on Tuesday.

What It All Means

An oversold reading doesn't guarantee that a stock will bounce back immediately, or at all. It simply suggests that selling pressure has been intense relative to recent history. Sometimes that selling is justified by deteriorating fundamentals. Other times, the market overreacts to short-term challenges, creating opportunities for patient investors.

With these three financial stocks, you've got a range of situations. Noah Holdings is showing solid profitability growth despite the stock decline. Ready Capital is in turnaround mode, working to stabilize its balance sheet. X Financial is navigating a difficult lending environment with rising delinquencies.

The common thread is that all three have RSI readings suggesting the market may have gotten overly negative in the near term. Whether that represents genuine opportunity depends on your view of each company's ability to navigate its specific challenges and deliver results over time.

Back to News

Three Oversold Financial Stocks Worth Watching This Month

MarketDash Editorial Team
8 hours ago
When stocks in the financial sector get beaten down, savvy investors start paying attention. These three companies are showing RSI readings below 30, traditionally a sign that selling pressure may have gone too far. Here's what's happening with each of them and why they might be worth a closer look.

When stocks get hammered relentlessly, there's usually a moment when the selling becomes overdone. That's where the Relative Strength Index comes in handy. The RSI is a momentum indicator that compares how a stock performs on up days versus down days. When the RSI drops below 30, it traditionally signals that an asset might be oversold, meaning the market may have gotten a bit too pessimistic.

Right now, three financial sector stocks are flashing these oversold signals. Let's dig into what's happening with each one and whether the beaten-down prices might represent opportunity.

Noah Holdings Limited (NOAH)

Noah Holdings posted some encouraging quarterly numbers back on November 25. The company's profitability grew substantially even as the stock took a beating, falling roughly 10% over the past month to trade near its 52-week low of $7.67.

Ms. Jingbo Wang, Co-founder and Chairwoman of Noah, expressed satisfaction with the results: "We are pleased to report strong growth in profitability during the third quarter as we continue to build on the strong momentum from the previous period. While net revenues increased slightly on a sequential basis to RMB632.9 million, non-GAAP net income grew significantly to RMB229.1 million, a robust 52.2% year-over-year increase."

That's a pretty solid earnings story, which makes the stock's decline all the more interesting. Sometimes the market focuses on concerns that don't show up immediately in the numbers.

RSI Value: 26.1

Recent Price Action: Shares of Noah Holdings fell 1% to close at $9.64 on Tuesday.

Technical Metrics: The stock shows a Momentum score of 16.36 with a Value score of 86.89, suggesting strong value characteristics despite weak momentum.

Ready Capital Corp (RC)

Ready Capital has had a rougher go of it. The company posted weaker-than-expected third-quarter results back on November 6, and the stock has declined about 12% over the past month. It's now trading close to its 52-week low of $2.13.

Thomas Capasse, Ready Capital's Chairman and Chief Executive Officer, didn't sugarcoat the situation: "Our primary focus continues to be restoring financial health. Through our decisive exit strategies for our underperforming loan and real estate exposure and risk management of our upcoming debt maturities, we believe we are on the path to balance sheet stability and profitability."

When management talks about "restoring financial health," you know the company is working through some issues. But for contrarian investors, that's sometimes exactly when opportunities emerge, particularly when the RSI suggests the selling may have been excessive.

RSI Value: 26.1

Recent Price Action: Shares of Ready Capital fell 4.7% to close at $2.22 on Tuesday.

X Financial (XYF)

X Financial has been hit hardest of the three, with shares plummeting about 41% over the past month. The stock is trading just above its 52-week low of $6.47, and the company is dealing with a challenging operating environment.

On November 20, X Financial reported third-quarter total net revenue of $275.5 million (RMB1,961.0 million), which represented a 23.9% increase year-over-year but a 13.7% decline quarter-over-quarter. That sequential decline tells you something about the current headwinds.

Kent Li, President of X Financial, laid out the situation: "Q3 reflected a more challenging operating environment. Loan origination declined from Q2 highs, borrower activity moderated, and delinquency rates increased across key categories. While profitability came under pressure from higher provisions and rising operating costs, we continue to prioritize risk control, collection efficiency, and disciplined execution. Our focus remains on maintaining credit quality, liquidity stability, and long-term competitiveness amid shifting market and regulatory conditions."

Rising delinquency rates in a lending business are never what you want to hear, but the company appears focused on the right priorities. Whether they can execute successfully is the question that could determine if this oversold situation represents value or a value trap.

RSI Value: 25.2

Recent Price Action: Shares of X Financial fell 3.6% to close at $6.63 on Tuesday.

What It All Means

An oversold reading doesn't guarantee that a stock will bounce back immediately, or at all. It simply suggests that selling pressure has been intense relative to recent history. Sometimes that selling is justified by deteriorating fundamentals. Other times, the market overreacts to short-term challenges, creating opportunities for patient investors.

With these three financial stocks, you've got a range of situations. Noah Holdings is showing solid profitability growth despite the stock decline. Ready Capital is in turnaround mode, working to stabilize its balance sheet. X Financial is navigating a difficult lending environment with rising delinquencies.

The common thread is that all three have RSI readings suggesting the market may have gotten overly negative in the near term. Whether that represents genuine opportunity depends on your view of each company's ability to navigate its specific challenges and deliver results over time.