Top 3 Financial Stocks Ripe for a Turnaround This Quarter

The financial sector occasionally offers the chance to invest in undervalued stocks—opportunities that arise when particular shares become oversold. Such scenarios can be pinpointed using certain metrics and indicators that signal when the timing might be right for investors to consider stepping in.

One essential tool for traders is the Relative Strength Index (RSI), a momentum indicator that evaluates whether stocks are overbought or oversold by comparing the magnitude of recent gains to recent losses. Stocks are generally considered oversold and potentially undervalued when their RSI drops below 30, which might indicate a favorable buying opportunity.

Tracking the financial sector reveals several stocks that are currently oversold, with their RSI hovering near or below the crucial threshold of 30. Here are three such stocks:

Great Ajax Corp. (AJX)

The stock took a hit after the company's fourth-quarter earnings failed to meet expectations, prompting a 25% price decline over the past month. Presently, Great Ajax Corp. has hit its 52-week low of $3.30.

RSI Value: 29.64

AJX Price Action: Shares saw a marginal 0.3% drop to close at $3.59 recently.

TriplePoint Venture Growth BDC Corp. (TPVG)

The challenges faced in the venture capital markets were evident in TriplePoint's last-quarter financial results, which didn't hit the forecasts. As a result, the stock fell by about 8% over the previous five days. TriplePoint also marked a new 52-week low at $9.08.

RSI Value: 25.94

TPVG Price Action: Shares declined by 0.3% to a recent close at $9.09.

AtlasClear Holdings, Inc. (ATCH)

The acquisition of technology assets didn't seem to curry favour with investors as AtlasClear Holdings saw its stock price drop about 24% last month, dipping to a 52-week low of $0.9310.

RSI Value: 23.76

ATCH Price Action: The company’s shares fell 3.8%, closing at $1.54 in a recent session.

Financial, Stocks, Oversold