As of March 28, 2024, five stocks in the health care sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.
Here’s the latest list of major overbought players in this sector.
The Pennant Group, Inc. (NASDAQ:PNTG)
- On Feb. 28, Pennant posted better-than-expected quarterly sales. “We are pleased with our strong finish to 2023 and continued momentum as we enter 2024,” said Brent Guerisoli, Pennant’s Chief Executive Officer. “By executing on our five key focus areas–leadership development, clinical excellence, employee engagement, margin improvement, and growth–we made steady gains throughout 2023 and solidly delivered on earnings expectations, even after increasing guidance during the year.” The company’s stock gained around 18% over the past month and has a 52-week high of $20.50 .
- RSI Value: 90.15
- PNTG Price Action: Shares of Pennant Group gained 1.7% to close at $19.84 on Wednesday.
Mesoblast Limited (NASDAQ:MESO)
- On March 25, the FDA informed Mesoblast that following additional consideration, the available clinical data from its Phase 3 study MSB-GVHD001 appears sufficient to support submission of the proposed Biologics License Application (BLA) for remestemcel-L for pediatric patients with steroid-refractory acute graft versus host disease (SR-aGVHD). The company’s stock gained around 54% over the past five days and has a 52-week high of $10.24.
- RSI Value: 71.74
- MESO Price Action: Shares of Mesoblast dipped 11.2% to close at $3.49 on Wednesday.
ARS Pharmaceuticals, Inc. (NASDAQ:SPRY)
- On March 21, ARS Pharmaceuticals reported a narrower-than-expected fourth-quarter loss. The company’s stock gained around 13% over the past five days and has a 52-week high of $10.20.
- RSI Value: 70.11
- SPRY Price Action: Shares of ARS Pharmaceuticals fell 0.4% to close at $9.96 on Wednesday.
Neuronetics, Inc. (NASDAQ:STIM)
- On March 25, NeuroStar Advanced Therapy received the FDA clearance as first-line add-on treatment for adolescents with depression. The company’s stock jumped around 62% over the past month and has a 52-week high is $4.99.
- RSI Value: 72.16
- STIM Price Action: Shares of Neuronetics gained 0.8% to close at $4.80 on Wednesday.
Inozyme Pharma, Inc. (NASDAQ:INZY)
- On March 26, Inozyme Pharma announced that it will discuss topline data from its ongoing Phase 1/2 trial of INZ-701 in adults with ABCC6 Deficiency, and from all cohorts of its ongoing Phase 1/2 trial of INZ-701 in adults with ENPP1 Deficiency. The company’s stock jumped around 22% over the past five days and has a 52-week high of $7.56.
- RSI Value: 71.56
- INZY Price Action: Shares of Inozyme Pharma climbed 9% to close at $7.39 on Wednesday.
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