Top 3 Health Care Stocks That Could Blast Off In October

The most oversold stocks in the health care sector presents an opportunity to buy into undervalued 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 oversold when the RSI is below 30, according to Benzinga Pro.

Here’s the latest list of major oversold players in this sector, having an RSI near or below 30.

Insmed Inc (NASDAQ:INSM)

• On Oct. 20, Insmed appointed two new directors to its board. The company’s stock fell around 21% over the past month and has a 52-week low of $90.39.
• RSI Value: 29.8
• INSM Price Action: Shares of Insmed rose 0.4% to close at $95.67 on Tuesday.
• Edge Stock Ratings: 7.86 Momentum score.

Axsome Therapeutics Inc (NASDAQ:AXSM)     

• On Oct. 8, RBC Capital analyst Leonid Timashev maintained Axsome Therapeutics with an Outperform rating and lowered the price target from $297 to $295. The company’s stock fell around 22% over the past month and has a 52-week low of $123.50.
• RSI Value: 27.6
• AXSM Price Action: Shares of Axsome Therapeutics gained 2.4% to close at $159.58 on Tuesday.
• Benzinga Pro’s charting tool helped identify the trend in AXSM stock.

Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR)

• On Oct. 14, Arrowhead Pharmaceuticals shared interim data from an ongoing Phase 1/2a clinical trial for ARO-MAPT, an investigational RNA interference therapy targeting Alzheimer’s disease and other tau-related disorders. “These early clinical data are exciting because they demonstrate that ARO-MAPT can achieve deep and durable reductions of tau expression in the brain following a simple subcutaneous administration, representing an important step toward developing a potential treatment for Alzheimer’s disease and other primary tauopathies,” said Christopher Anzalone, Ph.D., President and Chief Executive Officer of Arrowhead. The company’s stock fell around 14% over the past month and has a 52-week low of $36.73.
• RSI Value: 28.2
• ARWR Price Action: Shares of Arrowhead Pharmaceuticals gained 3% to close at $58.92 on Tuesday.
• Benzinga Pro’s signals feature notified of a potential breakout in ARWR shares.

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

Photo via Shutterstock