Top 2 Financial Stocks You May Want To Dump In Q3

As of August 19, 2025, Live Oak Bancshares Inc. (LOB) and Acres Commercial Realty Corp (ACR) are exhibiting overbought conditions with RSI values of 70.6 and 71.7 respectively, potentially signaling caution for momentum investors. LOB recently experienced a Keefe, Bruyette & Woods upgrade with a raised price target to $43 and a 32% gain over the past month. Concurrently, ACR posted upbeat quarterly sales and saw its stock rise 15% in the last month, despite both stocks' elevated RSI levels.

Analysis

Two financial sector stocks, Live Oak Bancshares (LOB) and Acres Commercial Realty (ACR), are exhibiting technical signs of being overbought, with Relative Strength Index (RSI) values of 70.6 and 71.7 respectively. This condition often signals a potential for a short-term price correction to momentum-focused investors. However, these technical warnings are contrasted by recent positive fundamental developments for both companies. Live Oak Bancshares has seen its stock gain approximately 32% over the past month, a move supported by a recent analyst upgrade from Keefe, Bruyette & Woods to 'Outperform' with a raised price target of $43. Similarly, Acres Commercial Realty's stock rose about 15% in the last month following the release of upbeat quarterly sales and a confident management outlook on growing its loan portfolio. The daily price gains for both LOB (+4%) and ACR (+1%) suggest that the market is currently prioritizing these positive fundamental catalysts over the cautionary technical indicators.

Key Decisions for Investors

• Given the overbought RSI levels for both LOB and ACR, investors should be cautious of a potential near-term price pullback or consolidation.
• For Live Oak Bancshares, the new analyst price target of $43 suggests further upside from its current $35.74 price, but the elevated RSI may warrant waiting for a better entry point.
• Investors in Acres Commercial Realty should monitor for evidence of the company's execution on its stated goal to grow its loan portfolio, as this will be key to justifying its current valuation.
• A prudent approach could be to place these stocks on a watchlist, looking for a technical pullback to confirm support before committing capital, provided the positive fundamental outlook for each remains unchanged.