Top 3 Financial Stocks That Could Blast Off In October

Several prominent financial sector stocks, including KKR & Co. (RSI 27.2), Marketaxess Holdings (RSI 27.2), and Apollo Global Management (RSI 29.9), have been identified as oversold, presenting potential buying opportunities after recent declines of 5-8% over the past five days. KKR and Apollo are slated to release Q3 2025 earnings in early November, while Marketaxess recently saw its price target lowered by Morgan Stanley to $253 despite an Overweight rating, indicating potential short-term volatility or value.

Analysis

Several large-cap financial firms are exhibiting oversold technical signals, potentially indicating entry points for contrarian investors. KKR & Co. (KKR), MarketAxess Holdings (MKTX), and Apollo Global Management (APO) all show a Relative Strength Index (RSI) at or below the 30 threshold following significant recent declines. KKR, with an RSI of 27.2 after an 8% drop in five days, presents a notable case with high Edge Stock Ratings for both Momentum (91.92) and Value (93.51), creating a divergence between its quantitative scores and recent price action. MarketAxess also has an RSI of 27.2 and its stock price of $169.59 is approaching its 52-week low, but Morgan Stanley recently reiterated an 'Overweight' rating while lowering its price target to $253, suggesting tempered short-term expectations but still significant long-term upside. Apollo, with an RSI of 29.9 after a 7% decline, has a 'potential breakout' signal noted by Benzinga Pro. The upcoming Q3 2025 earnings releases for KKR on November 7 and Apollo on November 4 are critical near-term catalysts that will likely determine the subsequent price trajectory for both firms.

Key Decisions for Investors

• Consider the oversold RSI levels in KKR, MKTX, and APO as a technical signal for potential mean-reversion trades, but exercise caution given the sharp 5-8% declines over the past five days.
• For KKR and Apollo, any new or existing positions should factor in the high event risk associated with their upcoming Q3 earnings announcements on Nov. 7 and Nov. 4, respectively.
• In the case of MarketAxess, investors should weigh Morgan Stanley's maintained 'Overweight' rating and $253 price target against the negative sentiment reflected by the stock trading near its 52-week low.
• Investigate whether KKR's high value and momentum scores represent a fundamental dislocation from its current price, which could signal a strong buying opportunity if the recent sell-off is deemed overdone.