Ten overbought financial stocks to watch during Q3 earnings season

Financial stocks are in focus as third-quarter earnings season gets underway, with investors assessing whether recent price momentum across the sector can be sustained.

Several financial companies are posting elevated Relative Strength Index readings, reflecting strong recent price momentum as investors monitor quarterly results and corporate updates.

Customers Bancorp, Inc. CUBI tops the list with an RSI of 79, placing it firmly in overbought territory. Oicintra, Inc. OICT follows with an RSI of 77, while Selective Insurance Group, Inc. SIGI posts a reading of 75. Nasdaq, Inc. NDAQ rounds out the top four with an RSI of 74.

Other notable names include Central Bancompany, Inc. CBC, S&P Global Inc. SPGI, and Cathay General Bancorp CATY, each with an RSI of 70. First Citizens BancShares, Inc. FCNCA and Evercore Inc. EVR follow with readings of 69, highlighting positive price momentum across banking, insurance, financial data, and investment banking companies.

The Relative Strength Index is a widely used momentum indicator that measures the speed and magnitude of recent price movements on a scale of 0 to 100. Readings above 70 typically suggest that a stock has entered overbought territory following a sustained advance, while readings below 30 indicate oversold conditions. The indicator is generally calculated using a 14-day lookback period.

Although an elevated RSI does not necessarily signal an imminent reversal, investors often monitor these stocks during earnings season, when quarterly results and management guidance can reinforce positive sentiment or trigger profit-taking.

Here is the list:

• Customers Bancorp, Inc. CUBI, RSI: 79

• Oicintra, Inc. OICT, RSI: 77

• Selective Insurance Group, Inc. SIGI, RSI: 75

• Nasdaq, Inc. NDAQ, RSI: 74

• Central Bancompany, Inc. CBC, RSI: 70

• S&P Global Inc. SPGI, RSI: 70

• Cathay General Bancorp CATY, RSI: 70

• First Citizens BancShares, Inc. FCNCA, RSI: 69

• Evercore Inc. EVR, RSI: 69