Top 3 Health Care Stocks That May Fall Off A Cliff In October

As of Oct. 16, 2026, three 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.

Option Care Health Inc (NASDAQ:OPCH)

• On Oct. 12, UBS analyst A.J. Rice downgraded Option Care Health from Buy to Neutral and cut the price target from $39 to $32.05. The company’s stock gained around 28% over the past month and has a 52-week high of $36.80.
• RSI Value: 84.2                                
• OPCH Price Action: Shares of Option Care Health rose 0.3% to close at $31.22 on Thursday.
• Edge Stock Ratings: 88.58 Momentum score with Value at 34.84.

Pacira Biosciences Inc (NASDAQ:PCRX)

• On Oct. 8, Pacira BioSciences announced it will be acquired by Viatris. Frank D. Lee, CEO, Pacira BioSciences said, “As we enter this next chapter, we are confident that Viatris’ shared vision, substantial resources, and global scale will accelerate the impact of our mission and help bring our transformative therapies to even more patients.” The company’s stock gained around 46% over the past month and has a 52-week high of $36.66.
• RSI Value: 84
• PCRX Price Action: Shares of Pacira Biosciences fell 0.2% to close at $36.33 on Thursday.

HealthStream Inc (NASDAQ:HSTM)

• On Oct. 13, Freedom Capital Markets analyst Gene Mannheimer initiated coverage on HealthStream with a Hold rating and announced a price target of $36. The company’s stock gained around 15% over the past month and has a 52-week high of $34.48.
• RSI Value: 83.4                                                                                                    
• HSTM Price Action: Shares of HealthStream rose 0.3% to close at $33.75 on Thursday.

Learn more about BZ Edge Rankings—click to see scores for other stocks in the sector and see how they compare.

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