Top 5 Health Care Stocks That Could Sink Your Portfolio This Quarter

The most overbought stocks in the health care sector presents an opportunity to go short on these overvalued companies.

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.

Here’s the latest list of major overbought players in this sector.

Apellis Pharmaceuticals, Inc. APLS

  • Apellis presented Phase 3 functional analyses of SYFOVRE for geographic atrophy. The company’s stock has a 52-week high of $90.68 .
  • RSI Value: 73.82
  • APLS Price Action: Shares of Apellis Pharmaceuticals fell 3.2% to close at $84.68 on Wednesday.

Talaris Therapeutics, Inc. TALS

  • HC Wainwright & Co. downgraded Talaris Therapeutics from Buy to Neutral. The company’s stock has a 52-week high of $9.47.
  • RSI Value: 76.34
  • TALS Price Action: Shares of Talaris Therapeutics fell 3.1% to close at $2.53 on Wednesday.

Longboard Pharmaceuticals, Inc. LBPH

  • Longboard Pharmaceuticals posted a narrower-than-expected quarterly loss. "I am very proud of the team for the progress that we made in 2022, including the strong engagement and excitement we have generated around the PACIFIC Study, which remains on track to deliver topline data in the second half of this year," stated Kevin R. Lind, Longboard’s President and Chief Executive Officer. The company has a 52-week high of $7.61.
  • RSI Value: 73.31
  • LBPH Price Action: Shares of Longboard Pharmaceuticals rose 3.7% to close at $7.61 on Wednesday.

Tenet Healthcare Corporation THC

  • Tenet Healthcare Q1 FY23 adjusted EPS came in at $1.42, down from $1.90 a year ago and beating the consensus of $1.15. "We delivered a positive start to the year across the organization and in particular, strong growth in revenues, volumes, and Adjusted EBITDA in our ambulatory care segment," said Saum Sutaria, M.D., Chief Executive Officer of Tenet. The company’s 52-week high is $76.37.
  • RSI Value: 74.56
  • THC Price Action: Shares of Tenet Healthcare rose 1.2% to close at $71.66 on Wednesday.

Smith & Nephew plc SNN

  • Smith+Nephew announced an agreement with NAVBIT to exclusively distribute the NAVBIT SPRINT disposable navigation device for use in primary hip arthroplasty in Japan. "Smith+Nephew's new agreement with NAVBIT offers Japanese surgeons an exciting technology to improve outcomes and efficiencies in the operating room," said Shinya Dobashi, Senior Vice President and Managing Director, North Asia, Smith+Nephew. The company has a 52-week high of $33.60.
  • RSI Value: 74.84
  • SNN Price Action: Shares of Smith & Nephew rose 1.8% to settle at $32.07 on Wednesday.


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