Top 3 Health Care Stocks That Should Keep You Up At Night This Quarter

As of July 16, 2024, 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.

Aveanna Healthcare Holdings Inc (NASDAQ:AVAH)

• On May 9, Aveanna Healthcare posted a narrower-than-expected quarterly loss. Jeff Shaner, Chief Executive Officer, commented, “Our first quarter results reflect the continued positive momentum at Aveanna, highlighted by revenue and Adjusted EBITDA growth of 5.2% and 22.5% respectively, when compared to the prior year period.” The company's stock gained around 38% over the past five days and has a 52-week high of $3.66.
• RSI Value: 76.61                              
• AVAH Price Action: Shares of Aveanna Healthcare gained 10.3% to close at $3.52 on Monday.

Revolution Medicines Inc (NASDAQ:RVMD)

• On July 12, Barclays analyst Peter Lawson initiated coverage on Revolution Medicines with an Overweight rating and announced a price target of $52. The company's stock gained around 24% over the past month and has a 52-week high of $48.61.
• RSI Value: 75.60
• RVMD Price Action: Shares of Revolution Medicines gained 1.9% to close at $46.00 on Monday.

Fulcrum Therapeutics Inc (NASDAQ:FULC)

• On July 10, Cantor Fitzgerald analyst Kristen Kluska reiterated Fulcrum Therapeutics with an Overweight and maintained a $23 price target. The company's stock gained around 40% over the past five days and has a 52-week high of $13.70.
• RSI Value: 70.72
• FULC Price Action: Shares of Fulcrum Therapeutics gained 5.5% to close at $8.45 on Monday.

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